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As the world stock markets settle down after the terrorist attacks in the US, the prognosis is that all may not be as bad as first thought. The attacks in September have forced a dramatic reaction from the market, bringing it closer to its natural bottom quicker than would have otherwise been the case. The world stock markets are now trading at 1997-1998 levels and once they have found some stability, investors will be looking for bargains.

Electricité de France was this week simultaneously able to capitalise on strong demand for bonds from defensive sectors and investors’ requirements for additional yield by issuing Eu800m of 15 year bonds via Crédit Agricole Indosuez, Merrill Lynch and UBS Warburg — the largest corporate issue in the maturity.

Electricité de France was this week simultaneously able to capitalise on strong demand for bonds from defensive sectors and investors’ requirements for additional yield by issuing Eu800m of 15 year bonds via Crédit Agricole Indosuez, Merrill Lynch and UBS Warburg — the largest corporate issue in the maturity.

* Achmea Hypotheekbank NV Rating: AA-

* Bayerische Hypo- und Vereinsbank AG Rating: Aaa/AAA (Moody's/Fitch)

* BNP Paribas Capital Trust II Rating: A2/A/A+

Over $490 million-worth of debt was announced in euro yesterday, with some interesting issuer names making an appearance. Caymadrid International was at the short end with a euro35 million one-year trade due on October 24. The borrower also closed a euro65 million one-year deal earlier in the week. Both trades are plain vanilla bullet notes and were managed by Deutsche Bank. Landesbank Sachsen announced an 18-month euro100 million trade and Achmea Hypotheekbank closed a four-and-a-half year euro100 million. And Landwirtschaftliche Rentenbank did a euro19 million five-year trade. The note has a bullet maturity and is non-callable. It pays interest semi annually at 3.83%.

Just over $1.7 billion-worth of deals were closed in euro yesterday. It was responsible for nearly 84% of deals closed in terms of amount with deals in yen and dollar representing only 7% of the market share. The day's longest trade came from Crediop Overseas Bank. It went out 15 years with its euro10 million ($9.11 million) note. The trade pays a final coupon of 14.8% and will be issued on October 15 2001. Caisse Nationale de Credit Agricole also saw opportunities at the long-end. It went out 11 years with its euro350 million ($318.73 million) note. The trade, which pays a final coupon of 5%, will be issued on October 10 2001. Unibanco stayed at the short end with its three trades. It issued two notes off its Unibanco - Uniao de Bancos Brasileiros programme: a euro1.02 million 18-month note that will be issued on October 2 2001 and a one-year euro1.73 million trade that will go out on the same date. Unibanco issued its last trade, and the day's smallest euro trade, off its Unibanco Leasing programme: a euro100,000 thousand one-year offering that will be issued on October 3 2001. Two Dutch issuers were busy in euro. ABN Bouwfonds Nederlandse Gemeenten went for a euro200 million one-year note that pays a final coupon of 3.46%. The note will be issued on October 4 2001. And Asset Repackaging Trust did a euro18 million 14-month trade that will be issued on October 24 2001 and pays a final coupon of 5%.

Volumes in euro fell on Tuesday and just over $1 billion-worth of deals were closed. The day's largest trade was a syndicated deal issued by MBNA Europe. The euro500 million ($455.33 million) fixed-rate note goes out to October 2004 and pays a final coupon of 5.25%. The trade was joint-led by Barclays Capital and Westdeutsche Landesbank and was issued at a price of 99.696%. The issue was rated Baa1 by Moody's and will be offered to the market on October 12 2001. International Bank for Reconstruction and Development went for a smaller note. It issued a euro25 million three-year note that pays a final coupon of 3.15%. The note pays interest semi-annually and will be issued on October 18 2001. Sabadell International Finance also saw opportunities in the three-year sector and went for a euro100 million FRN that will be issued on October 8 2001. Fiat Finance opted for the much shorter end with a euro200 million one-week note. The trade pays a final coupon of 3.855% and will be issued on October 4 2001. A spokesman at the issuer , who would not confirm the details or bookrunner off the trade, says: "We are very happy with our programme as its lets us issue at any length starting at one week. Under the programme we can also issue directly or through a dealer and we are very pleased with this."

Agence France Trésor (AFT) this week awarded Deutsche Bank, Barclays Capital and SG the official mandate for its first OAT linked to inflation in the euro zone, which will be launched later this month. Although the terms of the offering have not yet been finalised, analysts foresee a Eu5bn transaction with an 11 year maturity. A roadshow will take place from October 8-18, during which two AFT teams will tour Europe and the US.

The equity capital markets were given two examples this week that conditions are returning to normal - the first IPO and the first capital increase since the attacks in the US. Given Imaging, the Israeli medical technology company, raised $60m from its IPO. The 5m shares were priced at $12 each, the bottom of the $12-$14 price range.

GMAC this week braved tough and volatile market conditions to test investor appetite for auto manufacturer bonds and, against the odds, succeeded in attracting an order book of Eu3bn before printing a Eu1.75bn five year transaction. The price the company had to pay was a new issue premium of 20bp over the secondary market, but an extraordinarily short turnaround time of 25 hours saw the deal launched, increased, priced, and distributed to a broad spread of customers throughout Europe and in the US.