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Weak economic data from the US, which led to a 230 point fall in the Dow yesterday (Thursday), destroyed bankers' hopes for a return to stability in the bond markets and analysts now fear that the US will cut rates to prevent a double-dip recession. Corporate issuance fell to an all-time low, just one transaction being launched this week. But proving that quality at the right price will overcome investor fears, Procter & Gamble launched an opportunistic $500m five year global bond via Citigroup/SSB, Goldman Sachs and JP Morgan, raising the upper end of the targeted amount, albeit at the wide end of Treasuries plus 85bp-87bp.

Highlighting demand for five year and shorter paper from UK and overseas accounts, WestLB this week lead managed 14 sterling floating rate MTN trades totalling £638m for bank issuers. According to a WestLB syndicate official, the bank was initially approached by a single external customer interested in building a portfolio of sterling denominated FRNs for European banking names. While setting up the portfolio, WestLB became aware of demand from other accounts, which enabled the bank to increase the size of some of the issues. The borrowers are: WestLB (£99.183m), SNS Bank (£50m), Sanpaolo IMI (£74m), NordLB (£40m), LB Sachsen (£50m), IntesaBci (£24m), Hamburgische LB (£50m), Dexia Credit Local (£50m), Crediop Overseas Bank (£25m), Britannia Building Society (£45m), Bremer Landesbank (£20m), Bradford & Bingley (£30m), Bank of Ireland (£21m), HBOS (£50m).

This was another week of wild rumours. One fund manager rang us to say that he couldn't get a bid or an offer of any size in ING shares. Another called to say that he was having problems finding a bid in a two year old British Telecom bond. Another gibbering portfolio manager telephoned to say that there was no bid for Lehman's euro commercial paper. That wasn't surprising, as Lehman doesn't have any outstanding ECP. When it turned out to be a reference to some Lehman floating rate notes these were not only alive and well, but trading through Goldman Sachs paper.

Rating: AA/AAA Amount: $100m

Rating: Aa1/AA+/AAA Amount: Eu100m (fungible with Eu100m issue launched 12/07/02) Landesschatzanweisung series 408

Mandated lead arrangers Credit Suisse First Boston, Lehman Brothers and Royal Bank of Scotland are set to launch the circa Eu2.2bn debt facilities backing Europe's biggest ever leveraged buy-out into the Euroloan market. The facilities will support the Eu5bn LBO of French electrical fittings and accessories company Legrand by the Wendel Consortium from Schneider Electric.

Rating: AAA (Fitch) Amount: Eu400m (increased from Eu200m)

Mandated lead arrangers Credit Suisse First Boston, Lehman Brothers and Royal Bank of Scotland are set to launch the circa Eu2.2bn debt facilities backing Europe's biggest ever leveraged buy-out into the Euroloan market. The facilities will support the Eu5bn LBO of French electrical fittings and accessories company Legrand by the Wendel Consortium from Schneider Electric.

Compiled by Holger Kron Deutsche Bank, Frankfurt

A EuroWeek straw poll conducted among leading debt houses this week has revealed the pessimism and confusion that is clouding the European capital markets. We asked heads of debt capital markets (DCM) and syndicate, syndicate officials and analysts for their predictions of issuance in the third quarter and beyond.

Arrangers United Overseas Bank and Maybank have finalised details for the M$875m eight year term loan for Malaysia Mining Corp. The facility is divided between a M$300m portion and two bilateral tranches of M$475m and M$100m.

Yen business flourished this week. Just under 150 trades went through and supranationals were some of the most active issuers. International Finance Corp closed eight trades including a ¥1bn deal that goes out to March 2028 and was led by Deutsche Bank.