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  • While public benchmark bonds are the most visible part of top quality borrowers' funding, much of their issuance gets done behind the scenes in private, bespoke trades. Last year's vogue for constant maturity swap-linked issues has soured, and new structures have only partly taken their place. But as Hélène Durand reports, SSAs are also issuing more large, unstructured bonds outside their benchmark programmes.
  • Convergence between euro zone government bond spreads was one of the key results of EMU. But with the Stability and Growth Pact in tatters, Eurostat clamping down on creative accounting, and the European Central Bank raising rates, should the bond markets be discriminating more between the better and worse sovereign credits? The ECB certainly thinks so. Neil Day finds out if investors agree.
  • While the new member countries of the European Union are still some way from being elite sovereign issuers, the rarer borrowers like Lithuania and Slovakia have made impressive progress in the Euromarket this year.
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  • The inflation-linked bond market in Europe took a big step forward in March when Germany launched its first linker. The Eu5.5bn deal not only added Europe's premier issuer to the market, but gave many investors in Germany and elsewhere confidence to start buying the product. As Neil Day reports, inflation has come to the forefront of investors' minds in recent weeks, which is likely to help the market's development.
  • Rising stockmarkets and bond yields in the first few months of this year have eased the solvency pressures on pension funds. That in turn gives them less of an urgent incentive to buy long dated sovereign, supranational and agency paper. But the recent correction in share prices was a timely reminder of the rationale for asset-liability matching — the trend that has boosted demand for long-duration bonds. Neil Day reports.
  • The past 18 months has produced a remarkable flurry of bond issues by supranational and agency borrowers in new currencies, such as the Thai baht and Botswanan pula. Some of these currencies have thriving domestic bond markets; in others, local issuance is much more limited. Some of the SSA bonds are sold to domestic investors; others stay offshore. But as Matthew Attwood discovers, all of these deals are in some way taking emerging bond markets forward — while raising efficient funding for the issuer.
  • Investment banks appear to be slowly winning the argument that syndicating a deal can reap benefits for government issuers. Some borrowers, especially the smaller and less creditworthy, are enthusiastic about the technique, and even the grandest — the UK and Germany — have dabbled. However, as Hélène Durand reports, both those issuers have made it clear they will only use syndication for new structures, and with primary dealers scrambling over each other to please their clients, auctions are here to stay.
  • Government is closely monitoring currency movements
  • Bear Stearns announced that it will sell bonds worth $500 million in South Korea next month. This is the first time a foreign company has floated a US dollar-denominated bond in South Korea. South Korea Financial Supervisory Service announced that the 7-year Kimchi bond will be traded on the domestic stock market. Bear Stearns' total capital was $57.6 billion in February and total assets are $300 billion.
  • Calyon has hired Johnny Srivastava, v.p., from SG Corporate & Investment Banking and Ademola Adesina, senior associate, from JPMorgan to its U.S. structured credit sales team in New York. The pair report to Bertrand Delaunay, director in U.S. structured credit sales, who could not be reached for comment by press time. Zain Abdullah, managing director and head of structured credit and derivatives at Calyon, declined immediate comment.
  • A managing director in structured credit marketing at Merrill Lynch in London has left the firm.