See Naples and buy

Europe's heads of debt origination can't agree on whether a significant new class of borrowers is emerging. But the figures show that city and regional governments Europe-wide are turning increasingly to international investors for finance.

Municipal treasurers have discovered the roadshow, the yankee bond, and the Eurobond market. In 1990, just one local authority in the whole of Europe issued an internationally targeted bond: the German state of Baden-Württemberg, with a Dm300 million, six-year reverse floater. In 1997, municipalities and regions from seven countries made 18 international issues totalling $8.88 billion in value. There have already been 17 issues in 1998, despite the turmoil in many bond markets.

Regular names in the marketplace include Vienna, the Île-de-France, and the Basque country; newcomers in the last couple of years include Naples, Lazio, and the capital cities of Europe's emerging...