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* Swedish Export Credit Rating: Aa2/AA+

As was widely anticipated, September opened with an extremely busy week in the debt markets. Moreover, the boom is going to continue: swap dealers in New York say that between $60bn and $70bn of new issuance is expected this month in the dollar market alone, and a great deal of this should be swapped. In the face of this prodigious new supply, swap spreads are eroding. At the end of the week, five year dollar spreads had come in to about 73bp and the 10 year mid-market at 10 years is 79.5bp. When it is realised that 10 year spreads incorporate a 7bp roll into the new 5% August 2011 Treasury sold last month, 10 year spreads are now at the lows of the year.

The Kingdom of Denmark this week launched a $1bn Eurodollar transaction, the first dollar benchmark deal from a triple-A rated sovereign since the UK's in 1996. Moody's upgraded the Kingdom of Denmark from Aa1 to Aaa in August 1999. Standard & Poor's followed suit in February of this year, upgrading the foreign currency issuer rating from AA+. Denmark is one of the few European sovereigns still accessing the international capital markets, but tends not to issue more than Eu500m at a time.

DG Bank has issued and lead managed a Eu50m five year credit linked note, linked to the Slovak Republic's Eu500m 2010 dated Eurobond. The note pays a 6% coupon, and was issued at 99.90, giving a 132bp spread over swaps. In the case of a credit event, coupon payments are zero, and the bond is either swapped for an outstanding issue of the republic, or is settled in cash at the market rate for an outstanding sovereign issue, within 30 days of the event.

Croatia EuroWeek understands that the Republic of Croatia may tap the loan market after it failed to meet its privatisation target for 2001.

The European Investment Bank will be taking advice on its funding strategy over the coming month and the clear message from frequent issuer coverage officers this week was that the supranational has reached a make or break point in its aim of becoming the benchmark issuer in euros.

The European Investment Bank will be taking advice on its funding strategy over the coming month and the clear message from frequent issuer coverage officers this week was that the supranational has reached a make or break point in its aim of becoming the benchmark issuer in euros.

* Banca Carige SpA Rating: A3

After some low volumes in recent weeks, euro bounced back with a strong showing on Friday. Twelve euro notes were traded for $1.05 billion. Banco Santander Noroeste closed the largest trade - a 10-year euro500 million ($454.35 million) MTN that pays interest annually and has a final coupon of 5.250%. Royal Bank of Scotland also closed a 10-year trade for euro50 million. Louis Vuitton Moet Hennessy issued the longest-dated note, with a euro50 million trade that goes out to September 10 2026. Goldman Sachs helped boost volume with a euro75 million MTN that matures on June 25 2009. The note has a final coupon of 1.200% and pays interest monthly. Westland/Utrecht Hypotheekbank was the busiest issuer, closing three trades for a combined euro415 million. Two of the trades were for euro200 million and both notes carry quarterly interest payments and mature on September 7 2003. The euro15 million trade, which pays interest annually and has a final coupon of 1.000%, has a tenor of five years. BNP Paribas closed two small trades, for euro2 million and euro3 million. The smaller note matures on February 20 2009; the euro3 million trade matures on September 10 2004.

After Friday's high levels, the fall in euro volume yesterday came as no large surprise. Of the nine notes closed, only one was for more than euro30 million ($26.91 million). Cofinoga concluded the largest trade, for euro100 million. The two-year FRN pays interest annually. Credit Agricole Indosuez acted as the bookrunner. In contrast, Commerzbank International closed a two-year euro1 million MTN. The note pays interest annually and has a final coupon of 9.800%. Despite low volume, maturities were towards the long-end. BOATS Investments (Netherlands) is set to issue a euro10.68 million note that goes out to July 3 2031. The note pays interest singularly. Hypo Alpe-Adria Bank issued a 10-year euro30 million note that pays interest semi-annually. And both CDC IXIS Capital Markets (euro15 million) and Credit-Linked & Structures Securities (euro25 million) closed trades that reach out to 2009. Caterpillar International Finance (Caterpillar) and SGA Societe Generale Acceptance (SGA) both helped to boost euro volume. Caterpillar closed a three-year euro25 million MTN that pays interest quarterly. SGA concluded a two-year euro20 million MTN that pays interest singularly and has a final coupon of 16.000%.

Tuesday saw the busiest day for euro trades for quite some time, as $1.52 billion was issued off 29 notes. Bipop-Carire closed the day's largest trade - a euro500 million ($443.66 million) note that pays interest singularly. The note matures on October 26 2003. IKB Deutsche Industriebank also boosted volume with a euro200 million note that pays interest quarterly. Lehman Brothers was the bookrunner. All but eight of the trades mature in 2006. By far the largest of these trades was Deutsche Bank's euro100 million MTN than matures on May 10 of that year. The note pays interest singularly and has a final coupon of 5.250%. Deutsche Bank was also busy closing two other trades - a 12-year euro5 million trade and a 15-year euro5 million note. Both deals carry a final coupon of 3.000% and pay interest annually. UBS (Jersey) was by the far the busiest issuer, however, with eight trades in all. All of the notes were for euro10 million and all mature on September 20 2006. Salomon Smith Barney was active lead-managing a six-year euro3 million MTN for Banque et Caisse d'Epargne de l'Etat Luxembourg. Dutch issuers made a strong showing, with notes traded by ABN Amro Bouwfonds Nederlandse Gemeenten (euro170 million), Nederlandse Waterschapsbank (euro91.30 million), NIB Capital Bank (euro24 million) and Westland/Utrecht Hypotheekbank (euro14.89 million).

Whilst the number of issues remained quite high at 11, euro volume was down substantially yesterday from Tuesday's high. Regie Autonome des Transports Parisiens closed the largest trade - a euro300 million note that goes out to September 18 2013. Westland/Utrecht Hypotheekbank kept volume up with a euro250 million one-year note that pays interest singularly and has a final coupon of 4.090%. GMAC International Finance concluded a euro95.90 million MTN that pays interest singularly and has a final coupon of 4.259%. Zenith Systems closed the longest-dated trade - a 20-year euro30 million note that pays interest quarterly. The issuer also concluded a euro20 million note that pays interest singularly and matures on March 2 2005. Brazil made its impact on euro trading with two small trades from Unibanco - Uniao de Bancos Brasileiros. One of the issues was a euro0.42 million note that matures on March 7 2002. The other MTN was for euro1.09 million and matures on September 12 2002. Also issuing were Oesterreichische Kontrollbank (euro30 million), Sigma Finance (euro10 million) and Skandia Capital (euro20 million).