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Brazil's government this week announced yet more measures to stem the plunge in its currency and bond prices after being hit by a wave of selling earlier in the week on news that Moody's had downgraded the sovereign. In a bid to halt the panic among local investors, the central bank increased local bank reserve requirements to drain R$11bn from the financial system and pledged to buy back R$11bn of Treasury debt to boost demand for government bonds.

Private corporates issued 19 trades for $534.7m, which gave that issuer type a 9.64% share of the market. Volkswagen Investments closed a ¥6bn one year trade, which was upped from ¥5bn. The note, led by Deutsche Bank, carries an annual coupon 0.09%. Banque PSA Finance topped that with a ¥10bn trade that has a tenor of one year. Citigroup/SSSB was the bookrunner. BG Energy Capital tapped Czech koruna with a five year Ck740m trade via Dresdner Kleinwort Wasserstein. The note was rated A3 by Moody's and pays a coupon of 30bp over six month non-Libor. The trade was increased from Ck500m and issued simultaneously with a £40m deal. Opel Bank issued a one year deal for Eu18.20m.

The largest volume was done between three to five years - $1.55bn off 63 transactions - with currencies traded outside of the dominant euro, dollar and yen proving popular. Hapoalim International (Netherlands Antilles) closed a C$10m note that matures on September 7, 2005.

Volume in triple-A issuance rose above double-A after falling short last week. Lloyds TSB was particularly active in this sector, closing 16 dollar deals and two yen trades. The yen deals were for ¥500m and ¥1bn and pay interest semi-annually. Citigroup/SSSB was the most active bookrunner among the triple-As. The dealer placed a ¥1bn 15 year trade for Export Development Canada and a 10 year ¥500m note for Venantius. Citigroup/SSSB also led a two year $30m trade for CDC IXIS Capital Markets and a one year £25m note for Parkland Finance.

The $70m three year fundraising for All Season Property, guaranteed by China Resources (Holdings) and arranged by ABN Amro, has been closed oversubscribed and participants have had their allocations scaled back. Banks joining the small club deal are Bank of China, China Construction Bank and Hang Seng Bank.

JP Morgan and ING remain locked in discussions with the consortium that is sponsoring the purchase of a 51% stake in Cesky Telecom. EuroWeek understands the two banks have won the mandate to provide the senior debt backing the acquisition of the stake by Deutsche Bank Capital and TDC. More details will be available when the sale purchase agreement has been signed after the sale is completed at the end of this year.

The first ever mortgage backed securities deal from Costa Rica was closed this week, after 18 months of exhaustive planning and delays. The deal, involving the securitisation of residential mortgages originated by two Costa Rican banks, Banco Interfin and Banco de San Jose, had a triple-A wrap from XL Capital.

The mandate to arrange a Eu20m five year facility for Roskilde Bank has been awarded to RZB. The facility pays a margin of 28bp over Libor. Three levels of commitments have been offered: co-arranger, lead manager and manager. Proceeds will be used for working capital purposes.

DePfa is preparing a schedule for roadshows to be held before launching its debut dollar denominated global covered bond in September. The $3bn transaction, to be lead managed by Citigroup/SSB, HSBC and Merrill Lynch, will follow extensive meetings and conference calls with investors worldwide. But the target is clearly to broaden DePfa's investor base outside Europe, particularly in the US.

DePfa is preparing a schedule for roadshows to be held before launching its debut dollar denominated global covered bond in September. The $3bn transaction, to be lead managed by Citigroup/SSB, HSBC and Merrill Lynch, will follow extensive meetings and conference calls with investors worldwide. But the target is clearly to broaden DePfa's investor base outside Europe, particularly in the US.

Kemal Dervis ended months of speculation last weekend by resigning as Turkish economy minister to precipitate his own entry into politics. Dervis's aim is to form a broad-based centre-left alliance to compete in early elections scheduled for November 3. There are concerns over prime minister Bulent Ecevit's health and a breakdown in the ruling coalition's support for an EU reform package.

Rating: AAA Amount: Eu200m Öffentlicher Pfandbrief series 1026