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Standard Chartered has arranged and underwritten the first ever RMBS transaction for a state-owned entity in the Philippines. The Ps2.1 billion ($43.6 million) deal for the country’s National Home Mortgage Finance Corp comes in the form of notes with an average duration of five years priced at 8.4437%. There are two classes: senior notes aimed at institutional investors, and subordinated notes that the issuing entity will retain. Margarito Teves, secretary of the country’s department of finance, said that the bonds opened the door for further similar deals. Who said mortgage-backed securities were dead?

With many of its banks among the worst hit by the financial crisis in the Middle East, Bahrain now looks as if it might be a nucleus of GCC financial services consolidation. As elsewhere in the Gulf, there are too many banks in Bahrain considering the size of its economy. Bahrain’s economy is relatively precarious because it has smaller foreign reserves than its neighbours and the government has made large increases in expenditure in recent years. The island is also home to many banks with a regional focus.

Italy’s UniCredit made a €4 billion net profit in 2008, down 38% on the previous year but not as bad as some analysts feared. However, the bank, which is the biggest lender in central and eastern Europe, also recorded an almost 50% jump in bad debt provisions to €3.7 billion. The bank plans to sell up to €4 billion of hybrid debt to the Italian and Austrian governments, as well as private investors, to lift its core tier 1 capital ratio to 7.2% from 6.5%.

The country restructured its financial system after the Asian crisis, and so it might have lessons to offer the world. But its recent self-inflicted economic woes are urgent and less worthy of emulation. Eric Ellis reports from Bangkok.

Contrary to recent reports, Mexico’s government is not planning a rescue of beleaguered cement company Cemex, according to a senior finance ministry official.

Turkey is looking to take advantage of the fact that the country’s banking sector remains relatively well capitalized to achieve its challenging overseas funding requirement in 2009. Memduh Aslan Akcay, director general at the department of the treasury in Ankara, says that this year the country is looking to raise at least $3 billion in the international bond markets. This is likely to be the highest total required by any sovereign in the emerging Europe region. In 2008, Turkey had an indicated overseas funding target of $5.5 billion but the market turmoil caused by the fallout from the global credit crunch and associated economic slowdown meant that it was only able to raise $4 billion. So far this year the sovereign has raised $1 billion through a dollar Eurobond and the US currency along with euro will probably account for the bulk of this year’s issuance. "The US dollar and the euro were the main funding currencies so far and will remain as the core markets for us in the future," says Akcay. "On the other hand, we are ready to tap new currencies if and when we believe the conditions are appropriate for a transaction."

CMBS: We can’t work it out

Last month executives of the world’s largest banks, alarmed at collapsing share prices, told everyone what a profitable start to 2009 they had enjoyed. By the end of the month, shares were rallying. Let’s hope that actual first-quarter 2009 earnings announcements don’t pour cold water on their hopes. Peter Lee reports.

Mexican cement company Cemex has initiated talks with its core banks to renegotiate the majority of its outstanding debt: $14.5 billion in syndicated and bilateral obligations.

As the Philippines faces the Legacy scandal, president Gloria Macapagal-Arroyo is trying to reassure the world that her country is better placed to withstand the global crisis, after the lessons of 1997. She talks to Lawrence White about Asian regional cooperation, trying to beat corruption and why she’s letting Legacy fail.

Germany’s commitment to the EU project will guarantee bailouts for weaker eurozone members. But it’s a different story for hard-pressed central and eastern European states and their banks.

In two deals in as many days, Korean firms reopened Asia’s capital-raising markets. International issuance thus far this year has generally been limited to triple-A rated banks and financial institutions but deals from steelmaker Posco and SK Telecom reopened the straight debt and convertible bond markets respectively. SK was first out on March 19 with a $300 million convertible bond that caused something of a stir in the market for the way in which lead bookrunner Nomura behaved – see the separate story for full details. Posco followed on March 20 with a $700 million five-year bond that was the first dollar deal for an Asian company in eight months. Posco had initially marketed the deal with a guidance yield of 9.5% but in a piece of good fortune for the issuer an announcement by the US Federal Reserve that it would buy back some $300 billion in treasuries triggered a recovery in global bond prices that let Posco’s deal price at 8.95%.