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Brazilian bonds rallied almost seven points this week as investors began accepting the likelihood that leftist candidate Luiz Inacio Lula da Silva will become the country's next president after this Sunday's elections. The market has taken the view that even if Lula wins, things have to be better for Brazilian bonds in the short term, if only because of the end to uncertainty about who will be the next president.

Double-A rated borrowers took more than 40% of the market this week, with the Norwegian krone continuing in popularity. Abbey National Treasury Services closed a Nkr500m note via Nomura. The trade is fungible from the payment date with another Nkr500m issue launched on August 27, 2002. Den norske Bank was the bookruner on Norddeutsche Landesbank's Nkr500m four year note. The annual coupon is 6.36%. Hamburgische LB Finance (Guernsey) and Landesbank Rheinland-Pfalz also tapped Norwegian kroner.

The bulk of issuance this week occurred between three and seven years. The fall in yen trading meant that issuance under one year and between seven and 10 years was low. The highest volume occurred in the one to three year bracket. Nordic Investment Bank, Spintab and World Bank all closed for A$20m. The Hong Kong dollar was the choice of two borrowers. Citibank issued a HK$50m two year trade with an annual coupon of 2.345%. And Morgan Stanley self-led a HK$50m issue for MSDW Asia Securities Products. SNS bank closed a C$18m one year deal with a flat coupon.

Barclays is underwriting debt facilities worth around £40m backing Bridgepoint's 18% acquisition in wine supplier and importer Western Wines. Bridgepoint has invested an undisclosed sum in the deal totalling £53m. Management will also acquire a share in the company.

The $95m five year term loan for Guangdong Jianbao Group, arranged by China Construction Bank and SG Asia, is progressing well. Market participants have the option to lend in either dollars or renminbi and will earn a margin of 165bp over Libor. Fees to the market are at four levels: arrangers lending $9m earn 80bp, co-arrangers pledging $7m-$8.9m receive 67.5bp, senior managers taking $5m-$6.9m gain 57.5bp and managers providing $3m-$4.9m earn 45bp.

Swiss medical implants manufacturer Centerpulse has launched a Sfr255m rights issue to help pay for a $1bn court settlement that has gone against the company in the US. The capital increase is being 78% underwritten by 12% shareholder Incentive Capital, with the remainder underwritten by UBS Warburg.

CIF Euromortgage successfully navigated the challenging debt markets this week to raise Eu1.75bn of 10 year funding in the obligations foncières market via Barclays Capital and Crédit Agricole Indosuez (CAI). In only its second obligations foncières issue, the borrower was able to achieve a size in the upper end of its targeted Eu1bn-Eu2bn range and price its transaction within its guidance of 11bp-12bp over mid-swaps, at 12bp over.

Gloom prevailed in the US corporate bond market this week as third-quarter earnings warnings and continued anxiety over a potential US invasion of Iraq dominated investor sentiment. Only a little more than $5bn of high grade issues came to market this week, as investors, despite having high cash levels, refused to invest in anything but the best quality issuers.