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CDC IXIS Asset Management, the French asset manager, has become the latest institution to get involved in the fast growing hedge fund sector, with the launch of its European long/short equity fund. The fund manager believes that a rigorous approach to risk management will attract investors to the fund, which is being marketed as a low risk long/short fund.

Transactions increased: * Province of Ontario

BOC Group, the world's second-biggest industrial gas producer, has signed a £

The Republic of Cyprus this week became the latest EU convergence sovereign to follow the fad for 10 year euro benchmarks, with a Eu550m deal via Credit Suisse First Boston and Deutsche Bank. The deal proved the blowout success the market had awaited. Priced at 41bp over mid-swaps, it was twice oversubscribed and achieved the maximum size allowable under the Cypriot government's budget. With clean primary distribution, the paper hardly appeared in the aftermarket.

* Kreditanstalt für Wiederaufbau Guarantor: Federal Republic of Germany

The board of Charter European Trust went on the offensive this week, trying to outline to shareholders the true cost of Henderson Global Investors' unsolicited bid to take control of the trust. As the takeover battle entered its fourth week, Charter European sought to persuade its shareholders to reject Henderson's proposals. Charter's main complaint with Henderson's bid is the cost of implementation. Henderson has stated that its proposals, which offers investors a 75% cash exit from the trust, will cost up to 2% (£7m) of Charter's net assets to implement.

Croatia Brodosplit Brodogradiliste's debut $15m pre-export two year term loan is doing well in the market.

The success of GECC's $3.5bn five and 10 year global bond early this week paved the way for a revival in the dollar new issue market. By the end of the week, more than $11bn of issuance had come to market, including a blowout aggressively priced debut $3.5bn five and 10 year global bond for General Mills. Although primary issuance was thin in the fixed rate euro market, bankers report a calmer sentiment and an increase in investor activity, with spreads having remained firmer over the week. Nevertheless, some borrowers have been deterred by the volatility and have shelved their offerings, pending a more stable market. Union Fenosa, for example, has pulled its Eu500m five year bond, which was due to be launched by Goldman Sachs, and ThyssenKrupp has delayed its Eu500m plus five to seven year bond via Credit Suisse First Boston and Dresdner Kleinwort Wasserstein. But Südzucker will launch its Eu500m 10 year bond today (Friday) via Deutsche in the mid-swaps plus 58bp area, and EnBW is expected today or Monday with its Eu1.5bn five and 10 year issue via Barclays Capital and Deutsche Bank. The focus next week will be on the triple-A sector, with Landesbank Baden-Württemberg issuing a three year Eu1bn transaction via ABN Amro, Merrill Lynch and UBS Warburg. Price talk is in the mid-swaps plus 2bp area. And Pfandbriefstelle der Oester-reichischen Landeshypotheken-banken, rated Aaa by Moody's, will launch a benchmark Eu500m-Eu1bn transaction via Credit Suisse First Boston and UBS Warburg. Price talk is in the mid-swaps plus 13bp area. Land Nordrhein-Westfalen's Eu2bn benchmark issue, to be launched next week, will have a July 6, 2009 maturity and be priced in the range of mid-swaps minus 1bp to plus 2bp. The leads are Deutsche Bank, UBS Warburg and WestLB. The market will watch with interest the reception to Investor AB when it embarks on a roadshow on February 19, following the resignation of group chairman Percy Barnevik yesterday (Thursday). The A2/AA- entity is scheduled to launch a 10 year euro benchmark, with Morgan Stanley and SEB at the helm. Tepco is holding presentations in Europe for both fixed income and equity investors, and a Eu500m-Eu1bn five year bond is anticipated shortly after, via BNP Paribas, Goldman Sachs, and WestLB. In the FRN market, Caminhos de Ferro Portugueses is planning a debut euro transaction to be lead managed by BBVA and CAI. The 10 year non-call five floating rate note will be guaranteed by the Republic of Portugal. And Japan Highway will be hoping for improved market sentiment towards Japan and its guaranteed entities ahead of the launch next week of a Eu750m five year floating rate note. The deal is reportedly to be led by BNP Paribas and market price talk is in the Euribor plus 25bp-30bp area. The sterling pipeline is hotting up, with FirstGroup plc, rated BBB, scheduled to bring a £200m 10 year fixed rate issue following a roadshow this week. The UK-based international passenger transport group has awarded the mandate to Cazenove, Royal Bank of Scotland and UBS Warburg. Triple-A Réseau Ferré de France (RFF) is expected to launch a £200m 50 year bond today (Friday) or early next week. HSBC and UBS Warburg have the mandate for the transaction, which will be the longest triple-A bond in the sterling market. Price talk is Gilts plus 30bp-35bp. RFF will test the depth of investor demand for 50 year product, ahead of the LCR £1.2bn 50 year bond to be led by Barclays and UBS Warburg. Guaranteed by the UK government, the LCR issue will also be rated Aaa/AAA. Svenska Handelsbanken has appointed Barclays Capital and UBS Warburg joint bookrunners on its sterling debut, an upper tier two perpetual non-call seven issue.

Somewhat surprisingly, the dollar primary sector enjoyed a burst of issuance this week reminiscent of the earliest days of the year. A great deal of the paper was swapped to floating rate, which - in lieu of countervailing pressure - tightened dollar swap spreads. By the close yesterday (Thursday), the five year swap had come in to around 63.5bp over the 3.5% 2006 Treasury, while the 10 year had come in to 70.5bp over the new 4.875% Treasury due February 2012.

Credit Suisse First Boston and Citigroup/SSB have offered the lowest fees yet seen on a Latin American deal to win the hotly contested mandate to underwrite $1.25bn of bond issues for El Salvador over the next 18 months. El Salvador awarded the mandate to Citigroup/SSB after it offered a 20bp fee for a 10 year maturity and is said to have suggested CSFB - the house with the next lowest figure - accept a 20bp fee to become the other lead.

Credit Suisse First Boston and Citigroup/SSB have offered the lowest fees yet seen on a Latin American deal to win the hotly contested mandate to underwrite $1.25bn of bond issues for El Salvador over the next 18 months. El Salvador awarded the mandate to Citigroup/SSB after it offered a 20bp fee for a 10 year maturity and is said to have suggested CSFB - the house with the next lowest figure - accept a 20bp fee to become the other lead.