Germany

Guarantor: Financial Market Stabilisation Fund of the Federal Republic of Germany

A sell-off in eurozone government debt last week, over rumours that the European Central Bank might start tapering its quantitative easing programme, may have helped issuers bring more shorter dated deals in euros this week than have been possible for months — but some issuers are wary that more volatility could be ahead.

The European Stability Mechanism is close to deciding on the format its first dollar benchmark will be printed in, while a deal due this Friday could open up to longer dated tenors what has already been an extremely strong dollar market in the three year part of the curve.

The European IPO market has run into rough terrain, with three flotations abandoned this week and a fourth in trouble. Investors have been shaken by the poor trading of Nets, the Nordic payments group, fears of tighter monetary policy and volatility in sterling, write Aidan Gregory and Jon Hay.

FMS Wertmanagement became on Thursday the first public sector borrower since June to print a euro benchmark with a maturity below five years.

German agrichemicals company Bayer has concluded its $56.9bn loan syndication, getting a roaring response from more than 20 relationship banks in the largest syndicated deal of the year.

Deutsche Bank enjoys a dominant position in its home market, but rivals are snapping at its heels, and the German competitive landscape is in a state of flux, writes David Rothnie.

Sweden on Thursday will bring the second three year dollar benchmark of the week, after a deal on Wednesday in the same tenor from KfW that was the biggest trade in the currency since July.

UniCredit has made a pair of senior appointments in its German equity capital markets business.

Rentenbank tapped its new 10 year Kangaroo line for A$50m ($37.8m) on Tuesday. Attracting a mixture of Asian accounts, the agency's long dated paper pulled in a wide range of investors.

Two European IPOs have failed this week, as investor sentiment has been shaken by the poor trading of Nets and Innogy. The reticence has not stopped a UK publisher from enjoying encouraging ex-rights trading.

KfW named on Tuesday the banks it has hired to lead a three year dollar trade, its first in the currency since August.