GLOBALCAPITAL INTERNATIONAL LIMITED, a company
incorporated in England and Wales (company number 15236213),
having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • CREDIT SUISSE First Boston's ambition to become Europe's investment banking powerhouse came a step closer this week with the agreed acquisition of BZW's European equities and corporate finance businesses.
  • THE AUSTRALIAN government provoked howls of indignation from international investors this week by increasing the maximum price for the IPO of telecom operator Telstra. Many international bankers branded the move as opportunistic and accused the government of displaying a reckless attitude towards the stock's aftermarket performance.
  • * State Bank of New South Wales Guarantor: State of New South Wales
  • THE CITY of Turin is preparing to issue a second tranche of Buoni Ordinari Comunali (municipal bonds) fungible with the 20 year floater it launched in September 1996. The addition of a second Lit37.4bn tranche, scheduled for launch in mid-December, will lift the size of the transaction to Lit99bn. The proceeds of the second tranche will be used for public works in the city.
  • Market commentary Compiled by Brendan Goffinet, Hambros Bank Ltd, London. Tel: +44 171-865 1087
  • WESTDEUTSCHE Landesbank has set up Euro and US commercial paper conduits to provide an in-house rated funding source for its Compass asset backed programme. Compass has been active since 1995, privately refinancing assets through the Euroloan market. It has generated $900m of transactions with trade and financial receivables bought from bank and corporate clients in Germany, the UK and Spain.
  • HAMBROS BANK introduced the Guinness Trust to the capital markets this week with a £60m bond secured on a portfolio of social housing. The 40 year deal, rated Aa2 by Moody's and AA- by Standard & Poor's, was re-offered at 100.4436 to yield 95bp over the 8% 2021 Gilt on a 7.5% coupon.
  • * First USA will launch its long awaited French franc securitisation of US credit card receivables today (Friday), with Bear Stearns as lead manager. International Credit Card Funding No. 1 Ltd will offer Ffr2bn of seven year hard bullet bonds paying 26bp to 27bp over the 6.75% October 2004 OAT. If the bonds are not redeemed as expected in October 2004 the coupon changes to floating rate until final maturity in June 2007.
  • PUMA MANAGEMENT Ltd returned to the Euromarkets this week with a blow-out $900m securitisation of Australian mortgages. Lead manager JP Morgan increased the deal from $700m and still had spare orders. Kieran Brush, Puma's treasurer, said: "The bond was a resounding success by any standards, but in the adverse market we have now it is a triumph. We wanted a well priced, large issue and that is what JP Morgan delivered."
  • INTERNATIONAL Bank of Asia, the Hong Kong bank which is 55% owned by Arab Banking Corp, is considering securitisation as one of a number of options for reducing mortgage exposure on its balance sheet. Hong Kong mortgages make up about 40% of the bank's assets -- the level which the Hong Kong Monetary Authority has set as a maximum for banks in the special administrative region.
  • CHECK Point Charlie, the US asset backed commercial paper conduit which funds bond arbitrage vehicles for Bankgesellschaft Berlin, will issue again early in 1998. "We want to build up to a reasonable size as quickly as is practical," said Arjun Matthai, a director at BGB. "I'll be happy when we cross the $2bn mark."