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The CP market is facing a black few weeks, especially in California. Corporate spreads widened further this week when Southern California Edison (Edison), which distributes electricity to over 4 million customers, and PG&E, the region's biggest utility, suspended payment on over $600 million-worth of debt between them. Grid operators ordered statewide power cuts. The utilities had to absorb big price increases in the wholesale power market themselves because of a rate freeze on customers' bills. And suppliers have stopped selling power to the two companies due to downgrades of their ratings to junk status by Fitch. Moody's and Standard & Poor's are expected to follow suit putting both companies at default. John Delaney, MTN and CP origination at Goldman Sachs, says: "What's happening in California is certainly causing concern amongst CP investors. Maturities are shortening and more overnight trades are being done, which is a natural reaction." And although PG&E has only US CP shelves, and Edison has no outstandings off its $700 million Euro-CP programme, it is possible that the effects could be felt in Europe before long. Delaney adds: "The defaults of these companies will have a certain knock-on effect in the corporate sector, but it's an evolving situation. We should also expect to see spreads widening in Europe but it will probably be less dramatic."

Deutsche Apotheker- und Arztebank has increased the ceiling of its euro3 billion ($2.83 billion) debt issuance programme to euro6 billion. The arrangers are Deutsche Bank and Merrill Lynch.

Croatia Standard Bank has won the mandate to arrange a $35m three year term loan for Croatian Bank for Reconstruction and Development (HBOR).

Argentina * Banco Hipotecario SA

French drinks manufacturer Rémy Cointreau demonstrated this week how far it has come from its problems of two years ago, with a Eu260m convertible bond that attracted enormous investor interest. The bond was issued to finance Rémy's purchase of Dutch drinks producer Bols.

EFG Hellas has increased the debt limit of its euro500 million ($471.44 million) debt instrument programme to euro1.5 billion. Banca d'Intermediazione Mobiliare IMI and Merrill Lynch have been added as dealers. EFG Hellas is the financing vehicle for the Greek bank EFG Eurobank Ergasias.

* BES Finance Ltd Guarantor: Banco Espirito Santo e Comercial de Lisboa SA

Rabobank Nederland, Westland/Utrecht Hypotheekbank and European Investment Bank all issued in the 10- to 12-year yen sector. Rabobank's ¥3 billion ($25.36 million) 10-year trade pays a final coupon of 2.5%. The other two borrowers issued ¥1 billion notes paying final coupons of 2.2% and 2.1% respectively.

Australia The A$170m five year facility for Ausco Building Products, arranged by Westpac Banking Corp, is scheduled to close by the end of January. Bankers suggest the margin will be between 200bp and 240bp. Proceeds are for a leveraged acquisition.

Banca Nazionale del Lavaro SA, the Argentina-based subsidiary of Banca Nazionale del Lavaro (BNL), has signed a $500 million MTN programme. It is the second MTN programme signed by BNL. The Italian bank signed a euro5 billion ($4.67 billion) Euro-MTN facility in 1993. The arrangers off the new programme are UBS Warburg and BNL, and the dealers are ABN Amro, Lehman Brothers, Morgan Stanley Dean Witter, the issuer and the two arrangers.

There are high jinks as well as the usual frisky fun and games at Deutsche Bank in London, where "Banker of the Year 2000" Josef Ackermann is holding the reins after the sad loss of brilliant team leader Edson Mitchell. Ackermann knows he can make any amount of promotions to plug the gaps in his front line, but his efforts will have no more lasting effect than wet Polyfilla. To replace Mitchell, he will eventually be forced to look outside. But please do not doubt Ackermann's skills or his powers of persuasion. As an example, take the clever and thoroughly likeable Colin Grassie, who was due to leave Deutsche to become head of sales at BNP Paribas. Indeed, Colin had packed his Louis Vuitton bags and the Frenchies at BNP Paribas were ready to welcome him with 21 gun salutes and a gold pass card for every restaurant in Europe with three Michelin stars. BNP Paribas is on something of a roll at the moment, and Philippe Blavier and David Ovenden have clearly decided that they have the brainpower and financial resources to compete with the bulge bracket American houses.