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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.

Brazil * Banco BBA Creditanstalt (Nassau)

As emerging markets investors across the globe nervously want to discover the full scale of their losses in Argentina, one group in particular will have deep wounds to lick - Italian retail. The impact on the euro market this year could be dramatic, with many predicting an accelerated transition to a more institutional market. "At least half of [Argentina's] Eu29bn of euro bonds were held in retail accounts," estimated a strategy report from Commerzbank this week. "According to estimates of the Italian Banking Association, Italian retail investors alone held Eu10bn."

* Agence Française de Developpement Rating: Aaa/AAA/AAA

* Allgemeine Hypothekenbank Rheinboden AG Rating: A2/A-/A

European Credit Luxembourg is certainly the busiest borrower this week and has again issued four euro trades. It closed trades for euro2 million ($1.74 million), euro6 million, euro10 million and euro30 million. The two larger trades settle on February 15 2012. Elsewhere, just seven other issuers came to the market. Crediop Overseas Bank closed for euro100 million. The trade goes out for 30 years and has a single interest payment frequency. Italian bank, IntesaBci, did the largest trade - a euro150 million note via Goldman Sachs. The note has a four-year tenor and pays interest quarterly. Toyota Motor Finance Netherlands did a two-year euro60 million note. BBVA's financial repackaged entity, Atlanteo Capital, closed a euro2.56 million note that reaches out to February 25 2042. The trade pays a final coupon of 5.312%.

Just 10 trades were closed in euro for $703.79 million. European Credit (Luxembourg) was responsible for half the number done. It closed trades for euro1 million ($874.57 million), euro2 million, two for euro3 million and one for euro5 million. All five notes mature on February 21 2007. Fellow Luxembourg issuer, Banque Generale du Luxembourg, did a nine-month euro7.82 million note. It carries a coupon of 17.400%. BNP Paribas led a seven-year euro3.50 million trade for Compagnie de Financement Foncier. It carries a semi-annual payment frequency. Abbey National Treasury International go out to March 1 2004 with its euro6.50 million trade. And ING Bank closed a euro25 million deal that matures on March 15 2005. Renault Credit International SA Banque closed the largest trade - a euro750 million deal that has a tenor of six years. The note pays a semi-annual coupon of 4.400%.

Euro trading was again quiet but was up from the close of last week. Thirteen trades were closed in all. Casino Guichard-Perrachon closed the largest note - a euro400 million ($349.36 million) trade that has a tenor of ten-years. The note pays an annual coupon of 6.000% and was led by Credit Lyonnais, JPMorgan, Natexis Banques Populaires and SG Investment Banking. Fellow French issuer, BNP Paribas, did a five-year euro20 million note. And Credit Lyonnais Finance (Guernsey) is set to issue a euro1 million trade that settles on March 4 2003. The note pays a single coupon of 12.250%. German issuers closed three notes. Morgan Stanley led a euro100 million deal for Landesbank Sachsen. The floater pays a coupon of 3m Euribor flat and matures on August 25 2003. Bayerische Hypo-und Vereinsbank did a euro13 million public pfandbrief deal via Goldman Sachs. The note matures on December 14 2006. European Credit (Luxembourg) was the busiest issuer. It closed four notes for euro140 million in total. The notes range in maturity from 2003 to 2010. Investor, the Swedish corporate, closed the smallest and longest-dated trade - a euro0.50 million note that reaches out to March 12 2012. The trade pays an annual coupon of 6.000%. And GMAC International Finance did a euro150 million trade that matures on April 26 2004.