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Nasdaq and the S&P 500 index yesterday (Thursday) topped pre-September 11 levels, sparking further optimism that the capital markets are returning to business as usual. Corporate borrowers braved the market late this week, although the focus remained overwhelmingly on defensive sectors and instruments. Issuance was light in dollars, although Fannie Mae yesterday offered $2bn of five and 10 year Benchmark notes, giving investors another opportunity to buy top quality paper after a brace of issues from US agencies last week.

Bahrain EuroWeek understands that Aluminium Bahrain (ALBA) has approached relationship banks for a $107m debt facility.

* Gareth Jones, head of wholesale banking at Abbey National has resigned, to be replaced by finance director Mark Pain. His reasons for leaving are not known. Jones joined Abbey in 1989 where he began as group treasurer and chief executive of Abbey National Treasury Services.

Czech Republic The Czech Republic is likely to delay its proposed inaugural Eu500m-Eu1bn 10 year bond until the first quarter of next year. The republic needs time to pass necessary foreign securities legislation, and is also waiting for the international borrowing climate to improve.

Italy AGSM Verona, the gas and energy utility in the City of Verona, is planning an IPO of 51% of the company next year.

* World Bank Rating: Aaa/AAA/AAA

Oesterreichische Kontrollbank took advantage of the persistent bid for top quality paper in the global dollar market this week with the launch of its largest ever transaction, a $1.5bn three year issue that was twice increased from $1bn. The Austrian government guaranteed borrower's deal, via JP Morgan and UBS Warburg, attracted a similar following to those of the recent Inter-American Development Bank and Kreditanstalt für Wiederaufbau globals, both of which were priced after September 11.

Trades in other currencies picked up on Tuesday after a slow start on Monday and 13 deals were closed in seven different currencies. Three deals were closed in sterling. Landesbank Sachsen went out one-year with its £

Oesterreichische Kontrollbank took advantage of the persistent bid for top quality paper in the global dollar market this week with the launch of its largest ever transaction, a $1.5bn three year issue that was twice increased from $1bn. The Austrian government guaranteed borrower's deal, via JP Morgan and UBS Warburg, attracted a similar following to those of the recent Inter-American Development Bank and Kreditanstalt für Wiederaufbau globals, both of which were priced after September 11.

Twenty deals were closed in other currencies on Thursday. And issues in Hong Kong dollar were a particular favourite. Thirteen deals came to market in Hong Kong dollar but eight of these were closed by Societe Generale Acceptance. It issued eight HK$77.50 million ($9.94 million) notes that mature in November and December 2001. Development Bank of Singapore was also very busy yesterday. It closed four one-month notes. The largest note was a S$800 thousand ($450 thousand) note that will be issued on October 24 2001. Republic of Austria saw opportunities in Swiss franc. It issued a Swf300 million ($185.72 million) eight-year note that pays a single final coupon of 3%. The note will be issued on November 12 2001. Artesia Overseas went out a little shorter with its NKr50 million ($5.70 million) note that matures in 2003. The note, which pays interest annually, offers a final coupon of 4%. And Skandia Insurance went out three years with its Skr400 million ($37.86 million) note that pays interest annually and offers a final coupon of 5.5%.

Deals in other currencies have started to take off. Fifteen deals were closed on Friday: three in Swedish krona, four Hong Kong dollar deals, three in Singapore dollar, two sterling notes, and one issue in Polish zloty, Australian dollar and Norwegian krone. Rabo Australia went for a A$100 million four-year note that pays a final coupon of 5%. The note is rated triple-A by Moody's and Standard & Poor's and was issued at a price of 101.62%. The lead dealer off the note was Royal Bank of Canada Europe. Development Bank of Singapore was busy and closed three one-month trades in Singapore dollar. The largest trade was a S$1.66 million ($940, 000 thousand) note that will be issued on November 22 2001. Deutsche Hypothekenbank Frankfurt-Hamburg saw opportunities in Swedish krona and issued a Skr555 million ($52.03 million) note. The trade, which pays interest annually, offers a final coupon of 5.26% and will be issued on October 25 2001. Ericsson also plumped for Swedish krona. It issued a Skr370 million three-year note that pays a final coupon of 6.35%. The trade pays interest annually and will be issued on October 11 2001.

Hong Kong dollar was the only other currency investors felt comfortable with yesterday, as more uncertainty gripped the market. Just over $25 million was issued in the currency off five trades. Four of the trades were at the short end. Development Bank of Singapore, KBC Financial Products International and SGA issued one-month notes for HK$1 million ($128,230), HK$30 million and HK$77.50 million respectively. And Credit Lyonnais Finance (Guernsey) closed a HK$8 million trade that goes out six weeks. Commerzbank was the only issuer to venture past a six-week maturity with its HK$80 million two-year trade.