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  • GM's hopes of finding a buyer wanting to take a majority stake in GMAC started to fade this week as two potential bidders signalled their disinterest and GMAC moved to further shrink its balance sheet. Within days of each other Bank of America and Wells Fargo said they were not on the shortlist of possible buyers. Wachovia Bank also indicated it had no interest.
  • Construction company Fimag's Eu1.2bn three year revolver with two one year extension options closes today (Friday) and will be signed next week.
  • General Motors Acceptance Corporation (GMAC) widened by 100bp this week to a high of around 570bp — the widest levels seen in the captive finance unit since General Motors (GM) announced its intention to sell it back in mid-October. This news stimulated a strong rally, and in October it was at the 200bp mark. GMAC has regained a lot of ground and later closed the week at around 510bp/530bp, while GM was at 20%/23% upfront.
  • Coca-Cola issued what is expected to be one of the last European corporate bonds of the year this week, and with little competition in the market the deal was well covered. The two tranche issue came on Wednesday from A2/A rated Coca-Cola Enterprises Investments Commandite SCA (Lux).
  • Emerging market bond investors were so eager to spice up their returns before year-end this week that they lapped up deals from three countries that have recently defaulted on or restructured sovereign debt — Ecuador, the Dominican Republic and Argentina.
  • Emerging market bond investors were so eager to spice up their returns before year-end this week that they lapped up deals from three countries that have recently defaulted on or restructured sovereign debt — Ecuador, the Dominican Republic and Argentina.
  • Syndication of UBS's $1.27bn acquisition facility for pharmaceuticals company Actavis should close next week.
  • The European ABS market saw two records broken this week as ABN Amro and Royal Bank of Scotland launched two securitisations from their own balance sheets, both of them the largest issues yet for the respective asset classes.
  • Former media entrepreneur Leo Kirch is likely to win only partial compensation from Deutsche Bank, after Germany's top civil court said that comments by its chairman about Kirch's former media group's creditworthiness had broken the bank's duty of confidentiality.
  • The growth of electronic trading in the CDS market is in part underpinned by the worries of regulators about paper-based trading procedures in the mushrooming CDS market. The Dutch central bank became the latest regulator to worry about the backlog of trade confirmations and novation without consent in the CDS market in a report on stability released this week.
  • Rating: Baa3/BBB-
  • Rating: Caa1/CCC+/B-