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The US Federal Reserve's decision taken on Wednesday night to begin tapering its quantitative easing programme seems designed to ease investors into life without official monetary stimulus with as little disruption as possible, and the early signs are that the campaign has been a success. Senior capital markets bankers across asset classes were encouraged by the market reaction to the announcement and praised the Fed’s historical decision.

The FIG market was given an extra lift on Thursday — if it needed one — by the US Federal Reserve’s decision to taper its $85bn quantitative easing programme by $10bn on Wednesday, with bankers saying the market’s positive reaction to the announcement had banished fears that the bull run of the last couple of months could be derailed before the end of the year.

The US Federal Reserve’s announcement on Wednesday to cut its asset purchasing programme by $10bn to $75bn means that those ECM banks who have been busy building their deal pipelines for 2014 will be able to start their new year without the uncertainty when tapering will begin hanging over them.

Debt bankers are optimistic that January will be a robust month for issuance after the US Federal Reserve ended uncertainty about tapering by announcing that it will reduce monthly bond purchases next month for the first time since the global financial crisis.

Asiamoney PLUS highlights the latest job changes from across the fixed income and financial markets.

Lenders have brushed aside last year’s fears about regulation and are worrying instead about something they understand much better — the threat of intense competition. But worrying is only useful if it helps to arrive at a solution, and if 2013’s deals are anything to go by, loans bankers do not have one.

Russian banks would do well to follow the example the Turkish banks set this year in the MTN market.

As the US considers sanctions against Ukraine, the eastern European country’s hope of issuing $4bn next year in the Eurobond market are dissolving. Not only are investors baulking at the country's political situation, but Ukraine’s activities in the Eurobond market could be stunted for technical reasons too.

A single resolution regime, a single supervisory regime and a single fund, should, in theory, mean that southern Europe’s banks become delinked from their sovereigns.

Europe risks stagnating for much of the next decade, or even longer, without bold monetary policy, rapid reform and most importantly of all, a credible banking union, according to German government advisor Clemens Fuest. However, he warns that the banking union as it stands, will not work. Bill Thornhill reports.

As yields have plummeted over the last two years, insurers and asset managers — the mainstay of real money covered bond demand — have struggled to meet return on investment targets. However, as long term liabilities must still be matched, they are turning to alternative assets that, for regulatory reasons, banks are eager to offload. Bill Thornhill reports.