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Bond professionals are bracing themselves for a shake-out in the debt capital markets as fears grow that the turmoil in the financial markets will force some banks to pull out of the fixed income business. JP Morgan's decision this week to cut a further 2,000 jobs from its investment banking division on the back of a 91% fall in third quarter profits highlighted how the corporate world's woes of the past year have hit the financial industry's bottom line. The US bank wrote off $834m of commercial loans.

Rating: Aaa/AAA/AAA Amount: Eu85m

Mandated arrangers Erste Bank and Standard Bank are collecting commitments for the Eu40m four year facility for Erste und Steiermarkische Bank. The deadline for commitments is October 25.

Bremer Landesbank will come to the EuroCP market next week with the signing of a Eu5bn EuroCP facility, followed soon after by Household Finance Ireland which is also believed to be signing this month. But other big name borrowers have decided that conditions are too volatile and will wait until the new year before they consider coming to the market again.

Credit Suisse Group took advantage of a strong rally in the stock markets this week to place a Sfr1bn (Eu680m) block of Swiss Re shares. Credit Suisse chose an opportune moment to realise its remaining 3.5% holding in the insurer, as the global stock markets - and in particular the financials sector - staged a much needed recovery on the back of impressive results from some of the big US banks.

Amount: Eu1.72bn Rating: Moody's/Fitch

Amount: Eu150m Schiffspfandbrief series 400 Maturity: October 25, 2004

Equity bankers were busy preparing new offerings this week after surprisingly good earnings figures led to a sudden revival in global stockmarkets.

Equity bankers were busy preparing new offerings this week after surprisingly good earnings figures led to a sudden revival in global stockmarkets.

El Salvador pounced on a rare day of stability in the emerging markets yesterday (Thursday) to complete its funding needs out to June 2023 with a $451.5m 20 year put 10 transaction. The sovereign was bombarded with $1.65bn of orders, enabling the deal to be increased from $250m and priced to yield 8.70% to the 10 year put, tighter than the 8.875% guidance.

Germany-based utility E.On this week awarded Barclays (bookrunner), Citigroup/SSSB, Deutsche Bank (bookrunner), Dresdner Kleinwort Wasserstein, HSBC and JP Morgan (bookrunner) the mandate to arrange its revolver worth up to Eu15bn. Few details have been released before the term sheet and syndication strategy are finalised at a meeting to be held today (Friday). However, the revolver will have a 364 day and five year split maturity with the bulk of the debt housed in the 364 day tranche.

In a reversal of sentiment, dollar swap spreads have collapsed about 10bp from the highs of last week. In early dealing yesterday (Thursday), the 10 year spread came in to deal at a low of 58.25bp, over 11bp tighter than the highs of last week and 9bp tighter than closing levels last Thursday. From the lows recorded early yesterday, the market bounced a little and by the afternoon, the five year had risen to about 61.5bp over Treasuries while the 10 year was at 60.5bp. Nonetheless, despite the retrenchment, spreads have declined a long way this week.