Search results for

French car maker Peugeot took the euro corporate sector by storm yesterday (Thursday) with a Eu1.5bn 10 year bond, capitalising on its rarity value, strong business credentials and a timely removal of its negative rating outlook by Standard & Poor's. Leads ABN Amro, Credit Suisse First Boston (CSFB), HSBC and JP Morgan were faced with a book of over Eu5bn for the Eu1.5bn deal despite pricing that, compared with its US peers, looked prohibitively tight.

* Bayerische Hypo- und Vereinsbank AG Rating: Aaa/AAA

Finland Although pricing for the Eu2bn acquisition financing for UPM-Kymmene has not been released, EuroWeek understands that the fees for a top ticket will be around 20bp-25bp.

Two telecoms companies this week demonstrated the value of bookbuilding behind closed doors in the face of a sceptical market. The two companies - MM02 (BT Wireless) and Liberty Media - both suffering from the negative sentiment and tightening liquidity of the telecom finance sector, are set to announce large and committed bank lines within the next few days.

Market report Compiled by Richard Favis, RBC DS

* Bradford & Bingley plc Rating: A1/A+

Vattenfall, Sweden's state owned energy company, has completed roadshowing a Eu500m plus bond that looks set to kick off brisk supply from the utility sector over the coming month, which could benefit from investors' appetite for non-cyclical credits. The utility is planning a long seven year issue set to mature in early 2009. The price talk at 80bp-83bp over mid-swaps is wider than expected, but still considered too expensive by some bankers.

* ABN Amro Bank NV Rating: Aa2/AA

Televisa priced a $300m 10 year bond in the US market yesterday (Thursday), becoming the first of a growing list of Latin American issuers rushing to market in the coming weeks to make the most of what might be a short and precarious new issuance window. The deal, led by JP Morgan and Salomon Smith Barney, was priced at 98.793 to yield 8.179%, or 330bp over Treasuries, only 14bp back from Mexico's outstanding 2011s.

Thank God that August is out of the way. That was the view of a very famous UK equities specialist who has been in the City for more than 30 years. In his opinion equity markets and equity trading volumes are, on an adjusted basis for today's expenses and additional employees, the worst since 1974. "Stockmarkets fell faster in 1987 and then in the autumn of 1998," he continued, "but they recovered almost immediately, volumes were good and the main institutions did not hesitate to aggressively buy what they considered to be cheap stock." Is the outlook really that bad? In equities the situation does seem to be dire and the bulge equity houses such as Merrill Lynch and UBS Warburg may have to thin down again if, as seems likely, they are barely covering costs. We are hoping to have a meeting soon with Michael Marks, who has also seen it all during his hugely successful career and we will hang on every word. At JP Morgan Chase, Geoff Boisi has clearly warned that the bank, although not exactly of Billy Bunter proportions and only a middleweight in equities, needs to shed another 15-20 pounds.