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THE KOREA Development Bank (KDB) confounded market expectations this week with its $1.5bn global bond, a deal which some bankers are hailing as the most important ever from Korea.

THE KOREA Development Bank (KDB) confounded market expectations this week with its $1.5bn global bond, a deal which some bankers are hailing as the most important ever from Korea. It followed a month in which widening and volatile spreads have thrown the Korean yield curve wildly out of kilter. The A1-/AA-rated bank set out on roadshows unsure that it would even be able to launch an issue against a backdrop of such extreme investor disillusionment with Korean credits.

THE SEPTEMBER flood of mainstream Eurodollar transactions failed to materialise this week. Investors remain cautious about US inflation figures and an earlier than anticipated rise in interest rates, and potential

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NEW YORK City has opened a new chapter in the history of US municipal debt with the first securitisation of a whole revenue stream. The New York Transitional Finance Authority is authorised to issue $7.5bn worth of bonds, secured on a first call over the city's entire personal income tax take. The new authority will also be the first municipal funding arm to borrow at a higher rating than the parent government. Its debt will be rated AA by Standard & Poor's, A2 by Moody's, AA+ by Fitch and AAA by Duff & Phelps.

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SWEDISH state owned telecommunications group Telia AB has announced plans to set up a $1bn Euro-MTN programme in a move which will take the borrower into the Euromarkets for the first time. Deutsche Morgan Grenfell has been mandated to arrange the programme. Telia has funding of between Skr10bn to Skr12bn to complete in the next 15 months and will be using the Euro-MTN facility to complement its Skr8bn domestic funding programme.

US CORPORATES took centre stage in the Eurobond market this week, as Coca-Cola Enterprises launched the inaugural issue off its Euro-MTN programme and GMAC issued an innovative dual tranche package in floating rate Deutschmarks and sterling. Coca-Cola Enterprises recently acquired Coca-Cola's bottling rights in the UK and in several European countries, and those acquisitions will need to be refinanced in the next few months, much of it in non-dollar currencies. The company wanted to establish a benchmark Eurobond to introduce its name to a broad base of investors.

THE REPUBLIC of Venezuela exceeded the market's wildest expectations this week by issuing a $4bn 30 year global bond in exchange for Brady debt -- the largest international fixed rate sovereign issue ever launched.The deal, which was four times its minimum size, wipes out $4.4bn of Venezuela's Brady bonds -- more than half the country's $7.87bn outstanding Brady debt.

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