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The 23 US dollar trades all came from A3-rated borrowers and over. Just one US dollar trade so far this year has come from a triple-B rated borrower. The biggest trade came from Rabobank Nederland. The $1.1 billion CMS-linked note was managed by Mizuho and will mature on January 30 2017. Rabobank Nederland also issued a $10.30 million three-year range accrual note. The bookrunner was JPMorgan. Other issuers in the currency were Bank of Scotland Treasury Services with a $250 million two-year note and Instituto de Credito Oficial, also with an amount of $250 million, which goes out to 2005. Electricite de France also closed a $250 million syndicated deal via Royal Bank of Canada Europe and Salomon Smith Barney.

Globals * KfW International Finance

All but one of the 17 US dollar trades were from the private bank sector. The lowest-rated issuer was Unibanco - Uniao de Bancos Brasileiros did three notes: a $9.21 million one-month note, a $1.1 million six-month trade and a $1 million six-month deal. Rabobank Nederland issued two notes for $10 million. One is a four-year note and pays a final coupon of 5.250%. And the other goes out five years and 10 months and pays a final coupon of 5%. The only private corporate was Sigma Finance Corp with a $16.80 million three-year trade.

US dollar made up about 20% of the market with $584 million traded off 12 deals. BNP Paribas did two six-month notes for Banque Generale du Luxembourg. The first was a $2 million inverse floating-rate trade with annual call options. It is due for settlement on January 29. And the second note was a $10 million trade with the same structure, due on February 14. Pfandbrief Bank International closed a $33 million trade via Dresdner Bank. It is due on January 22 and goes out to January 23 2003. The plain vanilla deal pays a fixed rate of 2.135%. Toyota Motor Credit Corp was in the market again with a $100 million four-year note that pays interest semi-annually and Maquarie Bank did a $100 million two-year FRN note via UBS Warburg.

* Bank of Scotland Treasury Services plc Guarantor: Bank of Scotland

Austria Mandated arrangers Bank Austria Creditanstalt (joint bookrunner), Citigroup/SSSB (joint bookrunner) and Dresdner Kleinwort Wasserstein (joint bookrunner, facility agent and documentation bank) have launched a Eu500m five year revolving credit for Austrian utility OMV.

KfW's $3bn five year global dollar bond, the German agency's first step in establishing a dollar programme on a par with its euro benchmark issuance, dominated the high grade market this week. Lead managers, Citigroup/SSB, Goldman Sachs and Merrill Lynch, achieved KfW's aim of expanding its investor base into the US, selling this highly successful bond at 5bp over agencies. Meanwhile, Fannie Mae will today launch a reopening of its $4bn January 2007 Benchmark Note for pricing on January 24. Ford's restructuring announcement last Friday and its subsequent one notch downgrade by Moody's caused auto spreads to widen dramatically this week and led to a general deterioration in spreads across most sectors. In this negative environment, however, GMAC is set to announce plans for jumbo issues in the dollar and euro markets.

Volkswagen Financial Services launched its largest ever bond this week, a Eu2bn dual tranche transaction, but suffered from its ambitious targets and an end to the credit rally of this year when it was forced to pay a wider spread than expected. The benchmark issue, split into three and 10 year tranches, had been initially expected to receive a warm reception, but came in a week dominated by poor results from the sector and Ford's downgrade by Moody's.

The yen market has been creeping up to its usual activity and Friday saw 21 deals announced in the currency, raising just over $204 million for its issuers. One deal from Banque et Caisse d'Epargne de l'Etat Luxembourg took over 37% of this volume. The ¥10 billion ($76.29 million) trade goes out to June this year and has a fixed coupon of 4%. Credit Lyonnais Finance (Guernsey) announced three yen deals, for ¥103.5 million, ¥200 million and ¥200.22 million. They go out to March, April and May this year respectively. But Credit Lyonnais was also involved on the dealing side, leading a ¥500 million 15-year deal for BAWAG. The coupon is fixed at 3.2% for the first year, after which it becomes callable semi-annually, and CMS-linked, to the 20-year rate minus the two-year rate plus 65 basis points. Deutsche Pfandbriefbank made its 2002 debut on Friday. It was a ¥1 billion 30-year trade with Mizuho as bookrunner. The coupon is fixed at 5.5% for the first year, after which it becomes a power reverse dual currency (PRDC) note with a cap. Diamond Lease Company also made its first trade of the year in yen: a ¥3 billion three-month trade with a fixed coupon of 0.35%. And Goldman Sachs Group also went for a ¥3 billion note, which matures in January 2012. Nederlandse Waterschapsbank maintained a busy start to the year with its seventh yen note, a ¥1 billion 25-year deal led by Salmon Smith Barney. It has a fixed coupon of 4% for the first two years after which it becomes callable and a PRDC. And Vorarlberger Landes- und Hypothekenbank did a ¥1 billion 25-year trade via Nomura. It pays 4% for the first two years also, and then becomes an Australian dollar-yen PRDC.

Thursday was a busy day in the yen market, with 36 trades announced. The value of those trades was small however, and only World Bank and Canadian Wheat Board went for a size over ¥1.2 billion ($9.09 million). World Bank's ¥2 billion deal goes out to February 2032 and Canadian Wheat Board did a ¥1.8 billion 15-year trade via Mizuho. It also announced a ¥7.58 million 15-year note. AIFUL Corporation announced its fifth note in the Euro-MTN market: a ¥1 billion 5-year trade that has an initial fixed coupon of 2.21%. It issued twice in 1999 and once in both 2000 and 2001. BAWAG went for two trades at ¥1 billion and ¥600 million, both with terms of 20 years. And Oberosterreichische Landesbank, the only other Austrian issuer involved in the market yesterday, did two ¥1 billion 25-year trades and a ¥600 million 25-year trade, all via Mizuho. Rabobank Nederland went for two ¥1 billion 15-year trades, and Bank Nederlandse Gemeenten announced a ¥1 billion 15-year trade too. It has an initial fixed coupon of 2%. Earls did a ¥1 billion two-year deal, and SEALS did a ¥700 million two-year deal.

Supranational issuers were out in force with over $146 million raised off six trades. Nordic Investment Bank and European Investment Bank both went for PRDCs. Nordic Investment Bank's ¥5 billion ($37.88 million) 30-year note is non-call-three and callable annually thereafter. European Investment Bank's ¥1 billion note also goes out 30 years and is non-call-one. After the first year it has a trigger call and the coupon, which will be paid annually, is linked to the yen/US dollar rate. International Finance Corp issued two trades totalling ¥6 billion, going out to 2032 and 2027. And World Bank closed two notes for ¥5 billion and ¥2.3 billion (both go out 20 years). Two autos were also in yen. MMC International Finance issued a ¥2 billion two-month trade via Mizuho. And Toyota Motor Finance Netherlands did a ¥1.2 billion 10-year note that pays a final coupon of 1%. Mizuho also led trades for CDC IXIS Capital Markets, Banque et Caisse d'Epargne de l'Etat Luxembourg and Royal Bank of Scotland. Royal Bank of Scotland's ¥500 million 20-year note pays a fixed rate of interest at 2.4% for the first year. Thereafter interest is calculated according to 20-year CMS minus 6m ¥Libor and has calls semi-annually. And Nomura led trades for Landwirtschaftliche Rentenbank (a ¥2.5 billion 20-year reverse dual currency note linked to the yen/Aussie dollar rate) and for Nederlandse Waterschapsbank (a ¥1 billion 25-year callable note linked to the dollar/yen rate.)

Several high-rated issuers were placing paper with maturities going out to 2032 yesterday. African Development Bank did its third note of the year: a ¥500 million ($3.79 million) trade that matures in March 2032. It has an initial fixed coupon of 3.5%. Salomon Smith Barney led a ¥500 million 30-year trade for Kommunalbanken. Salomon also did trades for Eksportfinans (¥500 million, 20-years), World Bank (¥2.7 billion and ¥2 billion, both 29-years-and-eight-months), KfW International Finance (¥1 billion, 20-years) and Nikko Bank (Luxembourg) (¥300 million, one-month). Elsewhere Fujitsu Finance (UK) announced a ¥2 billion two-month trade that pays a fixed coupon of 0.08%. And also from Japan Tokyo-Mitsubishi International did a ¥700 million 15-year note that has an initial fixed coupon of 3%. Credit Lyonnais Finance (Guernsey) announced three deals, for ¥51.45 million, ¥50.40 million and ¥51 million, with respective terms of two months, three months and six months. Credit Lyonnais also kept up a run on the dealing side, leading a ¥1 billion 25-year trade for Pfandbriefstelle der Osterreichischen Landes- Hypothekenbank. It has an initial fixed coupon of 5.2% for the first two years, then is callable annually and becomes a power reverse dual currency trade.