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The sterling bond market received a boost this week with the news that the £2.3bn Boots Pension Scheme has liquidated its equity holdings and moved into triple-A rated bonds. Boots has taken to the extreme a strategy that pension funds have been quietly adopting for some time - using bonds as a better match for liabilities than equities.

The sterling bond market received a boost this week with the news that the £2.3bn Boots Pension Scheme has liquidated its equity holdings and moved into triple-A rated bonds. Boots has taken to the extreme a strategy that pension funds have been quietly adopting for some time - using bonds as a better match for liabilities than equities.

The Republic of Poland has agreed a full prepayment of its $3.321bn Paris Club debt to the Federative Republic of Brazil. However, Poland will only pay its cash-strapped counterpart $2.457bn cash, or 74% of face value. Brazil had been pondering since at least August ways to monetise the Paris Club debt as a cheap alternative, following the widening out of its Eurobonds on the coattails of the Argentina crisis.

Brunei will tap the syndicated bank market early next week for a $250m five year loan - its first ever offshore fundraising. The sultanate's finance ministry has mandated ABN Amro, BNP Paribas and HSBC to arrange the transaction. Pricing will be revealed next week when the credit is offered to sub-underwriters.

The Republic of Bulgaria shocked emerging market bankers yesterday afternoon (Thursday) by announcing that JP Morgan and Morgan Stanley will lead manage a Eu250m three to five year bond issue in the next two weeks - without calling a bidding contest for a deal that was keenly anticipated but not expected to emerge until next year. The deal will be roadshowed late next week with two teams presenting the deal in Frankfurt and Milan next Thursday (November 8), and then London on Friday (November 9). Launch is expected for the following week, provided market conditions are favourable.

The Republic of Bulgaria shocked emerging market bankers yesterday afternoon (Thursday) by announcing that JP Morgan and Morgan Stanley will lead manage a Eu250m three to five year bond issue in the next two weeks - without calling a bidding contest for a deal that was keenly anticipated but not expected to emerge until next year. The deal will be roadshowed late next week with two teams presenting the deal in Frankfurt and Milan next Thursday (November 8), and then London on Friday (November 9). Launch is expected for the following week, provided market conditions are favourable.

After posting worse than expected third quarter results on Wednesday, French telecoms equipment manufacturer Alcatel (Baa1/BBB+) may be downgraded soon by Standard & Poor's (S&P). The firm has already been cut twice this year by Moody's, which is unlikely to take any further decision on its rating until the fourth quarter. However, S&P, which currently maintains a negative outlook on Alcatel, may act more promptly after news of a Eu558m three month net loss versus a Eu297m profit for the same period last year, as well as a further 10,000 job cuts.