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The market for Latin American junk bonds was reawakened this week when Mexican pulp and paper holding company Corporacion Durango launched a $150m five year SEC registered deal. The issue is the first true Latin corporate bond to target the US high yield investor in over a year. The transaction, led by Morgan Stanley Dean Witter, was priced at par to yield 13.125%, at the tightest end of its 13.125%-13.375% guidance.

Croatia Standard Bank was set to launch the $35m three year term revolver for HBOR at the end of last week. The launch has been delayed because PBZ (Privedna Banka Zagreb), a core relationship bank for HBOR, wants to join the deal but is waiting for credit approval. The deal is guaranteed by the sovereign.

Argentina * Province of Buenos Aires

As foreshadowed in EuroWeek, Kreditanstalt für Wiederaufbau on Wednesday announced that it will this year launch two global benchmark transactions of at least Eu5bn, boosting the European agency market. Deutsche Bank, Schroder Salomon Smith Barney and UBS Warburg won the mandate to lead manage the prestigious inaugral issue, which will hit the market in March - six months after the three launched Freddie Mac's debut EuReference Note.

* Banca di Roma SpA Rating: A2/BBB+ (Moody's/Fitch)

* Bank Austria AG Deficiency guarantee from: City of Vienna

Rating agency Fitch this week released a report focusing on key developments in the leveraged market. The report pinpoints several trends in the market for 2001: the possibility of further volume growth; the rising numbers of old generation LBO transactions; and the increasing use and popularity of mezzanine debt. The report coincides with the imminent launch of the Messer Greisheim deal, which carries up to Eu500m in subordinated debt to be placed in the mezzanine or high yield bond market.

This week, the European market soaked up four convertible deals worth over Eu3.5bn, as demand for equity-linked offerings continued to outstrip supply. This latest instalment of convertibles means that international equity-linked markets have seen over Eu7bn of issuance in January.

This week, the European market soaked up four convertible deals worth over Eu3.5bn, as demand for equity-linked offerings continued to outstrip supply. This latest instalment of convertibles means that international equity-linked markets have seen over Eu7bn of issuance in January.

Bookbuilding for the Eu11bn IPO of Orange rolls on, and although some of the syndicate whisper about lack of retail demand, overall interest seems to be strong. Surprisingly, retail interest is thought to be stronger in Germany than in France. With the French UMTS licences likely to be less expensive than expected, telecoms stocks are back on investors' radars. "The background climate towards telecoms has visibly improved, particularly with what is happening to the French 3G licences," said one syndicate banker.

Spanish cable company Ono Finance should today (Friday) launch a $300m equivalent two tranche issue in euros and dollars, confirming the stronger tone of the European high yield market since the start of the year. The entry of the Caa1/CCC+ company, a repeat issuer, will further strengthen market participants' belief that after the struggles of last year, the junk market in Europe can reassert its strengths.

Panama yesterday (Thursday) launched a $750m 10 year global bond 50% larger than originally targeted, taking advantage of lower US interest rates and a desire by cross-over investors to move out of Mexico and into other credit upgrade plays. The sovereign only needs $500m to meet this year's funding requirements, but lead managers JP Morgan and Morgan Stanley Dean Witter convinced the issuer to increase the deal after attracting more than $1.1bn in orders.