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Guarantor: BP plc Rating: AA+

Private banks led the way this week but their lead was cut by a strong showing from public banks, which took more than an 18% market share. Prominent on the public side was Banque et Caisse d'Epargne de l'Etat Luxembourg which issued 10 trades for more than $71m. Its two largest deals were two ¥700m trades that go out to 2023.

CSFB and JP Morgan are about to send out the revised structure for the Brake Bros facility which may bridge the gap between senior lenders and potential high yield bond investors seeking enhanced security. The two lead banks are sitting on a £175m loan. However, when the deal was structured in 2002, it did not offer potential bond investors upstream guarantees from either the Bankco or OpCos. Because of the lack of guarantees European high yield investors rejected the issue when it was due in October.

Once again the highest number of trades was issued for over 10 years this week. However, volumes between this maturity and the one to three year term were separated by just $0.24m. Of the 52 transactions issued in the one to three year maturity, 22 were traded in euros for a market share of more than 42%. Yen was quiet with just four trades issued for less than $26m. Among these was a ¥1bn transaction for Komatsu Finance, rated Baa1 by Moody's. The note matures in March 2003 and pays a one off coupon of 17bp. The bookrunner for the deal was Tokyo-Mitsubishi International.