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  • JP Morgan and Telefónica's Mexican unit joined GECC in jumping into to the local peso market this week, pricing peso denominated bonds to soak up local investor demand and lock in pricing as much as 40bp below dollar comparables. JP Morgan priced Ps2bn of zero coupon 15 year Udibonos on Wednesday and Telefónica Finanzas Mexico raised the equivalent of $600m by re-opening its five year floating rate and seven year fixed rate Mexican peso offerings first issued in September last year.
  • Kaupthing Bank expects to sell the first Icelandic covered bonds by the end of March, up to Ikr62bn (Eu800m) off a new Ikr200bn (Eu2.63bn) programme.
  • HVB and ING will next week close syndication of Bank Caspian's $70m 364 day loan, which pays a margin of 175bp over Libor. Bankers say the deal is oversubscribed and will be increased.
  • KfW
    Guarantor: Federal Republic of Germany
  • KfW
    Guarantor: Federal Republic of Germany
  • KfW
    Guarantor: Federal Republic of Germany
  • BayernLB will launch the senior syndication stage for its Eu300m facility for Forstædernes Bank next Thursday.
  • Dealers in the European commercial paper market had an up and down week, some days seeing strong flows while others, such as yesterday (Thursday) with only $11bn of trades, much more subdued.
  • Despite a compression in arbitrage between the dollar and euro markets, the dollar sector provided fertile funding ground for European borrowers this week. The European Investment Bank, Oesterreichische Kontrollbank and Landwirtschaftliche Rentenbank took advantage of strong demand for dollar bonds as coupons reached levels better than investors had been offered for a long time.
  • Despite a compression in arbitrage between the dollar and euro markets, the dollar sector provided fertile funding ground for European borrowers this week.
  • The US dollar primary market was inundated with large, swap-driven deals from European borrowers this week. All achieved attractive funding compared to the euro market, despite the comparatively expensive basis swap costs to return to euros.