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Flows in the dollar swap market this week were almost all one way, and that was fixed rate receiving to hedge new issue positions. In lieu of any opposing flows, spread levels crumbled. By yesterday (Thursday) afternoon, the five year mid-market was around 61.75bp and the 10 year mid-market around 66.75bp. Prices contracted around 1bp or more on the day and were 3bp-4bp tighter than a week earlier.

ASM Brescia, a multi-utility based in the Italian city Brescia, will be the first of a slew of flotations this year in the municipal sector, Italian bankers said this week. The flotation, which is being managed by IntesaBci, Mediobanca and UBS Warburg, will come in the first half of the year. The offering will comprise a sale of 30% of the company, of which most will be a capital increase, and which bankers say will value the company at around Eu1bn. If the deal is successful, bankers predict that flotations could come from city utilities in Bologna, Verona, Moderna and Palma.

* Dexia Funding Netherlands Guarantor: Dexia Banque SA

* Kommunalbanken AS Rating: Aaa/AAA

Telecom Italia has upped the limit off its global MTN programme to $12 billion from $10 billion. Caboto (Gruppo IntesaBci) and Unicredit Banca Mobiliare have been added to the dealer panel.

Televisa, the Mexican media conglomerate, will price its $275m 30 year bond issue today (Friday), earlier than expected, after becoming one of the hottest straight debt issues on Wall Street this week. Lead managers Deutsche Bank, JP Morgan and Citigroup/SSB were bombarded with more than $1bn of orders yesterday (Thursday) morning, as high grade and emerging market investors alike scrambled for a piece of the action.

CGNU, the general insurer and fund manager, has announced its preliminary results for the 12 months ended 31 December 2001, as well as revealing that it wants to change its name to Aviva. Operating profits were up 41% to £2bn, but the contribution from the fund management division dropped to £29m from £61m in 2000.

Allied Domecq will be drawing on existing credit lines and use a £150m share sale to fund its acquisition of the Malibu rum brand from Diageo for £560m. Allied - which was advised by Goldman Sachs - fought off Pernod Ricard and Vin&Sprit for the popular brand.

* Dexia Funding Netherlands NV Guarantor: Dexia Banque SA

Over $1.9 billion was raised in US dollar off 21 notes and Republic of Lebanon was the biggest contributor. It launched a $1 billion three-year note with semi-annual payments and a final coupon of 10.250%. KfW International Finance did a four-year $200 million trade via Deutsche Bank. It is callable after 18 months and semi-annually thereafter. The coupon is fixed at 4.67% and is payable semi-annually. And European Investment Bank announced a $20 million 2.5-year non-call-one note. The note is callable annually thereafter and pays a coupon fixed at 3.76%.

Globals * Citigroup

Austria Arrangers Bank Austria, Citigroup/SSSB and Dresdner Kleinwort Wasserstein will sign banks into the Eu500m five year revolving credit facility for industrial conglomerate OMV today (Friday).