With Turkey's Akbank close to placing an up to $1 billion deal at press time, the country will have produced about $2 billion in DPR-backed paper since mid-May. This volume of Turkish structured paper is unusually high in such a short time frame and is particularly remarkable in light of the absence of fresh supply between last November and mid-May. One of the reasons for the mini gush is Standard & Poor's upgrade of the sovereign, sources said. While that took place in August 2004, there is a typically delayed reaction because of the structuring and due diligence involved.

"The S&P upgrade increased the monoline appetite, including XLCA's, and also increased general investor appetite," said Wynne Morriss, senior managing director at XLCA. MBIA has taken $550 million of exposure to Turkish banks over the last few weeks, while XLCA has taken $250 million.

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