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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.

The sustained rally in equity markets, which saw the Dow Jones gain almost 1,000 points from the five year low reached last week, brought some relief to the credit markets this week. As the third quarter reporting season got underway, almost two-thirds of the companies in the Standard & Poor's 500 Index reported quarterly profits exceeding forecasts, lending the markets a positive feel.

Rating: Aaa/AAA Amount: Ck550m

Rating: Aaa/AAA Amount: Eu100m

Rating: Aaa/AAA Amount: £100m (fungible with four issues totaling £525m first launched 07/04/00)

Rating: Aaa/AAA Amount: Nkr400m (fungible with Nkr400m issue launched 17/10/01)

Compiled by Stephanie Weedon, HSBC Bank plc, London Tel: +44 20 7336 3525

Rating: Aaa/AAA Amount: $50m

Hungarian Land Credit and Mortgage Bank (FHB) is to put its name to a EuroMTN programme of between Eu750m and Eu1bn. The arranger has not been chosen but yesterday (Thursday) was the deadline for pitches. Dealers with strong European distribution capabilities will be favoured. The issuer plans to have the programme up and running before the end of the year and the first note from the facility, which will be denominated in euros, will be launched in the first quarter of 2003. The Eu100m note will ideally go out to 10 years. The arranger will be joined on the dealer panel by another five or six houses.