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* DePfa Bank AG Bauboden Rating: Aa3/AA- (Moody's/Fitch)

Telecoms borrowers continue to drive volume in the European loan market. Decreased valuations for the telecoms sector mean there is nothing on the scale of last year's Eu30bn France Télécom transaction in the wings. There is, however, a combined total of over Eu15bn of debt from a swathe of telecoms financings being launched in the next few weeks. The Eu2.325bn loan for Valentia's acquisition of Eircom is one of several deals for mobile telephony service providers on the verge of being brought to the market. Mandated arrangers Allied Irish Banks, Barclays, Bank of Ireland, Deutsche Bank (joint bookrunner, facility agent and documentation agent) and Goldman Sachs (joint bookrunner) are thought to be targeting two tiers of banks in the senior syndication of the loan.

Friday was the busiest day for euro trades last week, with 20 notes issued. DePfa Deutsche Pfandbriefbank closed the largest trade - a euro300 million ($279.53 million) note that pays interest singularly. The note carries a final coupon of 12.000% and reaches out to December 17 2013. Morgan Stanley SPV, BRV, closed a euro145 million note that also goes out to December 17 2013. Fortis Finance boosted volume with a one-year euro200 million MTN that pays interest quarterly. European Credit (Luxembourg) closed the smallest trade - a euro1.50 million MTN that pays interest singularly. The trade matures on September 16 2009. Deutsche Bank also went for low volume, closing a euro1.52 million MTN that matures on February 28 of next year. The note pays interest singularly and has a final coupon of 3.780%. Societe Generale Acceptance closed two euro trades that both mature in less than two months, on November 7. The notes - which are for euro35 million and euro70 million - both have a single interest payment frequency. Other French issuers were also busy. Unibail closed a euro15 million note that matures on July 19 2003. The note pays interest singularly. Credit Lyonnais Finance (Guernsey) concluded a euro5 million note that pays interest annually. The note matures on December 21 2009. Angus, Banca Monte dei Paschi di Siena and Volvo Treasury all closed trades for euro50 million.

Despite a fall in number from Friday, euro trading remained strong on Monday with 11 notes issued. Volumes were small, however, with no trades over euro40 million ($36.83 million). Italy had a healthy day's trading with four issues totalling euro72 million. Banca di Roma closed a euro35 million note that goes out to September 28 2009 and a euro15 million note that matures on September 28 2006. Both notes pay interest singularly. Banca Toscana closed its fifth note of the year - a four-year euro12 million MTN. And Crediop Overseas Bank concluded a five-year euro10 million MTN that pays interest annually. European Credit (Luxembourg) continued what has been a busy month for them, with its sixth and seventh trades of September. The issuer closed a euro4 million note that carries a final coupon of 5.150% and pays a single interest payment frequency. The note is the longest-dated trade closed, going out to September 21 2011. It is also set to issue a five-year euro40 million note that pays interest semi-annually. Unibanco - Uniao de Bancos Brasileiros concluded the smallest and shortest-dated trade - a euro450,000 MTN that matures on 16 November this year. Also issuing towards the short end were BNP Paribas, which closed a one-year euro20 million note that pays interest singularly. And Credit Agricole Indosuez concluded a euro15 million MTN that matures on October 2 2002.

Euro remained strong as 19 notes were issued, gaining the currency 63.54% of the day's trading. Nationwide Building Society closed the biggest trade - a five-year euro500 million ($462.87 million) FRN that counted for over 50% of all euro volume. The trade was joint lead-managed by Barclays Capital and Merrill Lynch. The only other issuer looking for large volume was CDC IXIS Capital Markets. It closed a four-year euro300 million CMS-linked note that cannot be called in the first year but is callable thereafter on a semi-annual basis. The note carries a final coupon of 2.000%. Fellow French issuer, Caisse Nationale de Credit Agricole, closed a euro35 million MTN that has an annual interest payment frequency. The note goes out to September 26 2011. Lehman Brothers Holdings was the busiest issuer, closing trades for euro1.92 million, two for euro1.95 million and one for euro5.86 million. The three smaller notes pay interest singularly and have final coupons of 1.150%. The euro5.86 million note has a zero interest payment frequency. All of the notes mature on December 20 2005. NIB Capital Bank was also active, trading two euro1 million notes that mature on March 28 2005. One of the notes is linked to the increase of the S&P500 and has a capital guarantee of 4.35%. The other note has a capital guarantee of 4.9%. Both of the trades were self-led. Bear Stearns closed the longest-dated trade - a euro10 million note off its Euro-Dragon MTN programme that reaches out to October 3 2011. The note pays interest annually and has a final coupon of 10.000%. And Fiat Finance issued the shortest-dated note - a euro3.01 million MTN that matures on October 8 this year.

Euro trading was strong yesterday as 15 trades were closed in all. A euro5 billion ($4.60 billion) note by Federal Home Loan Mortgage Corp (Freddie Mac) dominated volume. The trade comes off the issuer's $ unlimited global debt programme and matures on January 15 2012. The note pays interest singularly and has a final coupon of 5.000%. But it was long maturities that stood out in yesterday's trading with four issuers going out over 20 years. Deutsche Bank SPV, Earls, closed two trades that both reach out to March 1 2024. The euro1.95 million and euro40.60 million notes both pay interest singularly. Deutsche Bank itself closed a euro300 million MTN which matures on October 14 2026. The note has a zero interest payment frequency. Bank Austria concluded a euro30 million note that has a tenor of 30 years. The note pays interest singularly. Societe Generale Acceptance was the busiest issuer - closing four trades in all. A six-year euro5 million note that pays interest singularly; a six-year euro10 million note that pays interest quarterly; a six-year euro12 million note that pays interest singularly and a five-year euro50 million note that has a zero interest payment frequency. And Societe Generale Australia closed a six-year euro3 million note that pays interest quarterly. Banque Internationale a Luxembourg closed the day's smallest trade - a euro3 million MTN that matures on December 27 of this year.

Euro had its quietest day for some time yesterday with just six trades closed. But there were some big trades done and lengthy maturities sought. Norddeutsche Landesbank closed the largest trade - a euro250 million ($231.63 million) note that matures on March 20 2003. Salomon Smith Barney acted as the bookrunner. Fiat Finance & Trade also looked for large volume and concluded a euro200 million MTN. The note pays interest singularly and carries a final coupon of 3.736%. Caisse Centrale du Credit Immobilier de France closed a six-year euro15 million note. The equity-linked note is linked to the European index and was lead-managed by Goldman Sachs. Fellow French issuer, Societe Generale Acceptance, is set to issue a five-year euro20 million MTN that carries a zero interest payment frequency. Atlanteo Capital looked towards the long-end with a euro4.14 million MTN that goes out to September 30 2036. And Lehman Brothers Treasury closed an eight-year euro10 million note that carries a zero interest payment frequency.

Freddie Mac this week showed the resilience of the international debt markets after the tragic events of September 11, following up a $5bn two year auction last Friday (September 14) with the successful launch of a new $5bn 10 year Reference note on Monday.

India Arranger SBI International has closed the ¥12bn five year term loan for Housing Development Finance Corp. The borrower provides housing finance to individuals and lease finance facilities to the corporate sector.

Estimates of insurance company exposure to the consequences of the terrorist attacks of September 11 were revised upwards dramatically this week. Munich Re yesterday (Thursday) issued a revised estimate of Eu2.1bn for its own net loss, double its figure from only a week earlier. The reinsurer is now comparing the industry's losses to those incurred from the San Francisco earthquake of 1906, in which Lloyd's of London made its name by paying claims when others failed.

The Latin debt and equity markets plunged this week as investors, gathering their wits after last week's terrorist attacks, began to dump riskier assets worldwide. Argentina's stock market dived to its lowest point in more than a decade, and spreads widened across the board, with even investment grade Mexico, the darling of cross-over investors, seeing its long dated globals gap out by more than 60bp.

Senior European equity capital markets bankers believe that almost everything is in place for the equity linked markets to pick up soon. "I think it is very likely that it will be one of the first markets to recover," said Walter Lewin, managing director of European equity linked capital markets at Merrill Lynch. The reason is the disastrous performance of stocks on world stock exchanges over the last year, particularly over the past four weeks. Almost all convertibles in the market are now well out of the money. According to the UBS European Convertible Index the average conversion premium for equity linked deals in the market at the moment is 140%. This is up from 100% at the beginning of September and more than five times what it was this time last year.