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The tumble in dollar swap spreads was arrested by the middle of this week as there was some abatement in the furious supply of swap-driven new issues. Nonetheless, 10 year swap spreads have come in almost 10bp since the end of 2001 to a mid-market of 70bp yesterday (Thursday). The five year mid-market is around 69bp and the two year 41bp. The intra-day lows of the week were reached on Tuesday, when both five and 10 year spreads were said to have dealt at 66.5bp. But thereafter the swaps market was given time to digest the wave of swapped deals as the pace of new issuance slackened.

What did the league table for the primary market tell us in 2001? Remember that this was a scorching year for debt, and anyone who suggests that the final positions don't really matter either has something to hide or needs to go and see their local psychiatrist at the earliest opportunity. It was always going to be Citigroup/Salomon Smith Barney's year and to be honest, they never looked like losing. One year ago, in EuroWeek's End of Year Review, we had made the bank clear favourite for the primary Gold Cup. It was a good bet: SSB was on a roll and this was a prize that it badly wanted to win. Merrill Lynch was considered to be the main opposition. We didn't agree. One year ago we said that Merrill's engine appeared to be stuttering and needed a change of oil. We thought that Deutsche Bank would give SSB the closest run for our money and that wasn't a bad call either.

Bulgaria Arranger Deutsche Bank has signed the $13m trade related loan facility for First Investment Bank Limited (FIBank). The loan was launched at $10m and was increased following good support for the borrower in the market.

The dollar market struggled to digest heavy supply this week as deals for the European Investment Bank and the Inter-American Development Bank sought to emerge from the shadow cast over the three year sector by the $3bn World Bank issue of last week. The World Bank's January 2005 global bond continued to struggle this week. It was launched at around 29bp through Libor and 12bp tighter against its Treasury benchmark than a $3bn three year Federal Home Loan Banks issue launched shortly afterwards. By Monday, it had widened from 93bp to 96bp over Treasuries, and bankers could find few investors in Asia or Europe that were interested in the paper.

Brazil * Federative Republic of Brazil

* Allgemeine HypothekenBank Rheinboden AG (AHBR) Rating: Aa1/AAA/AAA

* Bancaja International Finance Guarantor: Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja)

* Republic of Austria Rating: Aaa/AAA/AAA

* Republic of Austria Rating: Aaa/AAA/AAA

Euro trading is getting stronger every day in 2002. Twenty issues were made for $1.58 billion with four issuers going out over euro100 million ($89.17 million). CIBC closed the largest deal - a euro500 million note that carries a tenor of four years. Norwegian corporate, Telenor Communications, was not far behind with its five-year euro400 million deal. The note pays an annual coupon of 5.250%. Cofinoga closed for euro300 million. Its note pays interest quarterly and settles on January 25 2005. And Marks and Spencer Finance did a euro150 million six-year trade. As is often the case, Germany was the busiest issuer nationality with five trades. Deutsche Telekom International Finance closed a two-year euro50 million note. It pays a single coupon of 4.375%. Hypothekenbank in Essen closed for euro50 million also. Its note matures on the 18 July of this year, paying a coupon of 3.316%. And Volkswagen International Finance did a one-year euro14 million trade that pays interest on a monthly basis. Dutch issuers were also active. ABN Amro Bouwfonds Nederlandse Gemeenten did a euro35 million note that goes out to January 16 2013. The note carries an annual coupon of 5.390%.

Six trades were closed in the market in euro. Dexia Credit Local de France issued a euro150 million ($132.33 million) three-year note that was led by Nomura. The trade, which offers a coupon of 6m Euribor + 5bps, pays interest semi-annually and was issued a price of 100.043%. DaimlerChrysler UK Holding closed two trades in the currency: a euro30 million eight-month note that pays a coupon of 3.77% and a euro15 million nine-month issue that offers a final coupon of 3.85%. Atlanteo Capital, the SPV arranged by BBVA, also issued twice in euro. It closed a euro4.57 million 30-year trade that pays a coupon of 5.04% and a 39-year deal that pays a coupon of 5.45%. Societe Generale Acceptance closed the day's other trade: a euro15 million eight-year deal that will be issued on January 23 2002.

German issuers are very busy in the public markets in the euro sector. Landwirtschaftliche Rentenbank closed the largest public deal: a euro1 billion ($881.83 million) three-year note that was joint-led by Barclays Capital, Merrill Lynch and UBS Warburg. The deal was issued at a price of 99.829% and offers a coupon of 4.125%. BMW US Capital Corp went for a slightly smaller euro750 million seven-year MTN via Barclays Capital, Dresdner KW and Salomon Smith Barney. BMW's note offers a coupon of 5.125% and will hit the market on January 28 2002. Deutsche Telekom placed two euro500 million notes that go out to 2004 and 2005. The 2004 note pays a coupon of euribor + 0.55% and was led by BNP Paribas. Goldman Sachs was busy on the private side and led three deals for DaimlerChrysler, Eurofima and NIB Capital. DaimlerChrysler's two-year euro100 million note pays a coupon of euribor + 85 bps and was issued at a price of 100.05%. Eurofima also went for a two-year euro100 million note that offers a coupon of 3m euribor - 1 bp. But NIB Capital went a little bigger with a euro300 million MTN that goes out to 2004 and pays a coupon of 3m euribor + 5 bps.