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Repsol, the spanish utility and Caixa Catalunya, the spanish savings bank, are to sign Euro-MTN programmes. Caixa Catalunya will bring its shelf to the market next Tuesday and Repsol is to sign its facility before the end of September 2001.

The £200m loan for First Choice Holidays plc has received several commitments in general syndication, since last Tuesday's air attacks in New York and Washington. The borrower's sector, leisure with an emphasis on air travel, has become problematic in light of recent events.

The total volume of deals announced on Friday crept back up again after two days at half the usual number. Sixty-eight trades were closed, according to MTNWare, in US dollar, euro, yen and Hong Kong dollar with a volume of over $1.57 billion. US dollar made up 20% of the market with 18 deals. Trades under one year were thin on the ground, while four issuers closed small trades in the 10-year sector via Mizuho. Names at the short end were UBS Australia with a $150 million one-month note and HSBC Investment Bank (Netherlands) with a $20 million 35-day trade. HSBC Bank USA also issued seven notes in the three- to five-year sector for a total of $11.54 million. DaimlerChrysler UK Holding closed two $33.20 million notes that mature in September 2003. Both pay a final coupon of 0.5%. Canadian Wheat Board was present in the seven-year sector with a $10 million note that pays a final coupon of 5.290%. The Aa2-rated issuer did the trade via Mizuho. Danske Bank, Kommunalbanken and Federal Home Loan Banks did $10 million 10-year deals via Mizuho. They pay final coupons of Libor+0.6%, Libor+0.4% and Libor+0.45% respectively. CDC IXIS Capital Markets closed a $13 million 10-year note via Mizuho. It pays 6.4% on its final coupon.

Last week's events are continuing to have a knock-on effect on the volumes of trades closed. US dollar was the currency of just three deals and the overall total was down to 43, the lowest number of trades closed in the past week. IBJ Australia Bank (IBJ), Merrill Lynch and Bayerische Landesbank were the only issuers in US dollar. IBJ closed a $50 million three-month note. Merrill Lynch closed a self-led $7.50 million note that goes out to 2004. And Balaba closed a six-year fixed-rate trade for $300 million that pays a final coupon of 5.375%. The note was led by Dresdner Kleinwort Wasserstein.

Thirteen trades were in US dollar, with investors keeping mainly to the triple- and double-A rated issuers. Bayerische Hypo- und Vereinsbank closed a $100 million vanilla floater out of its Singapore office. The two-year note pays 3m $Libor+2bp and was self-led. Triple-A rated Bank Nederlandse Gemeenten closed a $20 million capped floater via Mizuho. The 10-year note is capped at 7.5% throughout the 10 years and interest is based on $Libor+70bp. The issuer swaps this into Euribor. Bianca Ydema, at the issuer, says: "We did the same structure one week ago - it is possible it is the same investor looking for different issuers. The trade gives us a good level." Deutsche Bank also issued two 10-year deals off its Euro-MTN programme for $5 million and $10 million. Issuance of 10-year US dollar trades has increased during the second half of this year. A total of 266 trades have been issued this year in 10-year US dollar with June and July being the busiest months for this type of note. Mizuho is bookrunner of about one fifth of these notes. Most of these trades have been sold to triple-A and double-A rated issuers.

The market is still holding off on the short-term maturities in US dollar and only Unibanco - Uniao de Bancos Brasileiros closed a $1.5 million two-year trade. Three- to six-year tenors were definitely the flavour of the day. KfW International Finance closed a $150 million three-year floating rate note based on $Libor. The bookrunner was JPMorgan. Other issuers in this sector were BNP Paribas, SGA and Abbey National Treasury Services with $400,000, $2 million and $5 million notes respectively. Five issuers were in the five-year sector and the six-year sector saw four notes from two borrowers: a $3 million trade from BNP Paribas and two $30 million and one $20 million deals from UBS (Jersey). Royal Bank of Scotland closed a flipper. The $20 million note is a 10-year no-call-two and is floating rate for the first two years linked to $Libor. After two years, if it is not called, it becomes fixed rate at 7.25%. The note was self-lead by Royal Bank of Scotland Financial Markets.

* Federal Home Loan Banks Rating: Aaa/AAA

The high grade US bond market was revived this week with a small but significant number of deals from borrowers keen to help the market to its feet and take advantage of historic low short dated Treasury rates. By yesterday (Thursday), Walt Disney had issued a $1bn two part deal, Campbell Soup had come to market with a $300m seven year offering, IBM with a $1.5bn five year, GECC with a $2bn one year floating rate note and Canadian National Railways with a $600m offering of 10 and 30 year bonds.

In the four days of stock market trading in the US this week, $1.3tr has been sliced off market value as the Dow Jones Industrial Average declined by 13%. In the midst of the turmoil, swap spreads have plunged. By the close yesterday (Thursday), 10 year swap spreads had tightened by 14bp from levels seen at the opening bell on Monday to 71bp midmarket. Five year spreads had come in about 8bp to 83bp.

Issuers, bankers and investors this week struggled to get back to business following the devastation of last week. Liquidity seeped back by the day, and some cheer was provided by large, liquid issues from three of the market's top borrowers: Freddie Mac, the Inter-American Development Bank (IADB) and the World Bank.

The yen sector ended last week quite well considering the events earlier in the week. There were 30 trades announced on Friday, though they only amounted to just over $200 million-worth. The biggest transaction was a ¥3 billion ($24.96 million) seven-year trade by Cadbury Schweppes Finance. World Bank and New South Wales Treasury Corp (NSWT) both opted for ¥2 billion 20-year deals. World Bank's pays a final coupon of 3% and NSWT's pays a final coupon of 4.1%. NSWT also did a ¥600 million trade with the same tenor. Its final coupon is 4%. Kommunekredit announced a ¥500 million note that goes out to September 2021. Kommuninvest I Sverige did a ¥400 million trade that matures in September 2026. And KfW did two trades. Both were ¥1 billion notes that go out to October 2031. At least one had Mizuho as the bookrunner, and that one has an FX/capped currency-linked hybrid structure. Interest is 3.5% until February 2 2005, when the interest is linked to the US dollar/yen exchange rate and the note becomes callable annually. Sanwa International did its 80th yen note of 2001. It was a ¥200 million trade that goes out to September 2016. There were six other trades from Japanese issuers. Daiwa Securities SMBC Europe did two ¥500 million notes and one ¥1 billion trade. All have 15-year terms. Mitsubishi Cororation announced a ¥1.2 billion 10-year note. MMC International Finance did a ¥1 billion three-month trade, and Nomura Europe Finance did a ¥205.92 million trade that matures in January next year.

* Nomura Global Funding plc Guarantor: Nomura Securities Co Ltd