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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  • LEHMAN BROTHERS brought $600m of fixed rate bonds this week, backed by rental income and repurchase agreements on Avis Rent-a-Car's US fleet. The Euro/144A bond is the second from Aesop Funding II LLP, a master trust which began funding in July last year with a blow out $1.65bn deal, also lead managed by Lehman.
  • MORGAN STANLEY Dean Witter this week brought the first long dated securitisation backed by UK public houses, for Wellington Pub Co plc. The £231m deal is also the first pub securitisation to rely entirely on current revenue for repayment of principal. Wellington parcels cashflows from the 845 pubs sold by Nomura-backed Phoenix Inns to Grovebase Ltd and the Morgan Stanley Real Estate Fund in November last year.
  • COMPTOIR des Entrepreneurs returned to the market this week with a Ffr1.5bn deal from Vauban Mobilisations Garanties, the finance company's triple-A rated mortgage securitisation vehicle. CPR, Deutsche Morgan Grenfell and Société Générale ran the books jointly with no further syndicate, expecting the asset swap accounts who dominated sales to take large tickets.
  • MERRILL LYNCH brought a $262m global bond for Countrywide Home Loans Inc, backed by loans to B and C credit borrowers in the US. Countrywide Securities acted as co-manager. Countrywide Asset Backed Securities 1998-1 was broken into four floating rate and seven fixed rate tranches. The bulk of the deal came as FRNs, reflecting the proportion of the collateral which is floating rate.
  • There is no particular value at which a foreign exchange rate is stable.
  • BANK OF Queensland made its debut in the Australian mortgage backed market this week with an A$200m deal through sole manager SBC Warburg Dillon Read. Series 1998-1 REDS Trust issued A$198.4m of class 'A' notes with an average life of three years and two months, and A$10.6m of 'B' notes with a notional six year and four month average life.
  • DKB International lead managed its first asset backed security this week, as it successfully introduced Japanese finance company Orient Corporation to the Euromarkets. OSCAR Funding Corp sold a $300m FRN backed by consumer auto loans at 28bp over one month Libor. The deal has an average life of 1.85 years and should mature at 3-1/2 years through a 5% clean up call.
  • THE ASIAN Development Bank launched what bankers hailed as a landmark transaction in the Hong Kong dollar market this week in an attempt to establish a liquid benchmark curve at the short end of the currency. The HK$3bn transaction was launched in three tranches of one, two and three years, with each tranche sized at HK$1bn. HSBC Markets was the bookrunner.
  • MOMENTUM for the Republic of Korea's first ever direct borrowing in the international debt markets gathered pace this week as the country received a welcome rating boost and appointed lead managers for forthcoming issues. On Monday, the republic announced that it had appointed Goldman Sachs and Salomon Smith Barney to lead manage up to $9bn of bond issues.