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LEHMAN Brothers has strengthened its reputation for executing successful small scale collateralised loan obligations with a $360m deal for BHF-Bank. Balanced High-Yield Fund I Ltd offered a $210m 'A' class rated Aaa by Moody's with a 5.5 year average life and coupon of 28bp over three month Libor.

CREDIT AGRICOLE Indosuez has kickstarted the French mortgage backed market for 1998 with the debut securitisation this week from Banque La Hénin. Florimmo Mortgage Loans Securitisation, a fonds commun de créances, sold Ffr1.5bn of Euronotes with an average life of 1.43 years and Ffr915m of domestic bonds with a 4.84 year average life.

TWO groups of UK housing associations successfully tapped the long dated sterling investor base this week, lending further strength to one of Europe's most coherent asset backed market sectors. Hambros Bank inaugurated Haven Funding (32) plc, a new vehicle structured almost exactly like Haven Funding, but which reaches maturity in 2032 rather than 2037.

PARAGON, one of the main survivors from the UK's centralised home lending boom of the 1980s and a leading light in sub-prime mortgage securitisation, returned to the markets this week with a £175m deal through HSBC Markets. "We are delighted to be leading a deal for one of the most frequent issuers in the UK," said a structuring official at the bank. "We won the mandate in December on the strength of our dominant distribution capability in sterling, structuring expertise and relationship with Paragon." HSBC is one of the lender's bankers.

ASIA'S only monoline financial guarantor, ASIA Ltd, has been downgraded by Standard & Poor's from A to BB, leaving investors in $1.4bn of guaranteed product with sharply devalued assets. S&P took action because, following sovereign downgrades in Korea and Indonesia, the percentage of sub-investment grade assets guaranteed by ASIA Ltd had risen to around 40%, well above the 25% limit in the company's operating guidelines.

SUNAMERICA Life Insurance Co made its return to the Euromarkets this week with a $200m FRN backed by guaranteed investment contracts (GICs). ABN AMRO sold the single tranche, issued off SunAmerica's note issuance programme SunAmerica Institutional Funding. Rated AA- by Standard & Poor's, the deal pays a coupon of 12.5bp over three month Libor to its bullet maturity in February 2003.

A vast amount of effort is spent upon producing complex market models.

THE BILLION shares-plus demutualisation of Australian Mutual Provident (AMP) will be launched in April or May and list on the Australian Stock Exchange in early June, according to a company spokesman. Institutional investors will be able to buy around 22.5% of the sale.

ABBEY NATIONAL, one of the Euromarket's more active borrowers, is seeking to repeat the success of its recent debut Uridashi bond with the launch of a repeat transaction on Monday. With Nomura again as lead manager, the UK high street bank is lining up a ¥20bn-¥50bn two year deal with a dual currency structure that will offer redemption in sterling.

DBS ASIA Capital's $40m IPO for Dalian Refrigeration Co is still hanging on as the B-Share market dropped to historical lows this week and the company finished its roadshow in Japan today (Friday). Analysts around the region added another challenge to the deal, saying that Dalian's price range is out of line with the market.

A 250m SECONDARY share offering by New York-listed Huaneng Power International (HPI) became the chief casualty of renewed volatility across Hong Kong markets this week, with the roughly $150m deal postponed by lead manager JP Morgan midway through roadshows. The failure of the H-share issue disappointed market participants, many of whom view the company as one of the strongest Chinese counters.

KOREA'S MAMMOTH fundraising programme looks likely to take shape in New York next week during what looks set to be a series of extremely heated debates between a government with a reputation for pricing inflexibility and a 90-strong group of creditor banks hoping to extract some value from the republic's financial distress. Bankers say that of the two plans on the table, the JP Morgan-led commercial bank debt exchange now looks to be favoured over a Goldman Sachs/Salomon Smith Barney bond plan.