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While corporate bond markets continued to trade in erratic fashion this week, large benchmark transactions were successfully executed, proving that the right deals at the right price can overcome market turbulence. In dollars, IADB scored a success with a $1bn increase to its June 2003 global bond, bringing the total size to $3bn, making the deal the supranational's largest global to date. The issue was ideally suited to increased investor demand for short end, high quality assets and the historically high spread of 6bp-7bp over three year agencies made this bond a strong buy for central banks and other high quality investors in the US, Europe and Asia. American Express was also able to reap the benefit of investor liquidity and lack of supply. Its $500m five year global bond, placed largely in the US, attracted buyers looking for a solid financial name as a refuge from corporate debt. A strong order book enabled the US financial to reduce the spread on its issue from 130bp to 125bp. Fannie Mae will price 10 year and 30 year Benchmark securities on Wednesday. Joint leads are Lehman Brothers, Merrill Lynch and Salomon Smith Barney. It will be the first issue since Fannie Mae and Freddie Mac's announcement of a joint package of increased disclosure and sub debt issuance. In the days following the announcement on October 19, spreads for 10 year and 30 year agency bonds tightened in 8bp and 10bp against mid-swaps, respectively. France Télécom provided the first real test of investor sentiment towards telecom debt since Italy's unsuccessful UMTS licence auction on Monday and came through with flying colours, giving much needed confidence to the beleaguered telecoms sector. Other successes were enjoyed by North West Water, which launched a Eu750m seven year bond at what was deemed a cheap level of 95bp over mid-swaps, and Hamburgishe Landesbank with its Eu1bn five year benchmark priced at 8bp over. Several transactions have been postponed until next year but the new deal flow in November will include a benchmark euro issue from ABN Amro subsidiary Bouwfonds, the company's first benchmark euro issue since it was granted a banking licence by the Dutch central bank on October 1. A fixed or floating rate issue of Eu500m-Eu1bn is expected, probably in a five year or seven year maturity. Bookrunner will be ABN Amro with Dresdner Kleinwort Benson as joint lead. Rheinmetall AG, a German automotive, electronic defence and engineering company, is set to launch its inaugural Eurobond in mid-November with Commerzbank and Dresdner Kleinwort Benson as joint bookrunners. The proposed Eu300m five year offering has been rated Baa2/BBB by Moody's and Standard & Poor's and roadshows will begin next week across Europe. Parker Hannifin Corp, rated A2/A, will start roadshows on November 6 before launching its inaugural euro deal via Morgan Stanley Dean Witter. A five year to seven year bond is expected. Islandsbanki FBA will today (Friday) launch a Eu250m two year FRN via Barclays Capital and HypoVereinsbank plus a syndicate of eight banks. It will be the institution's inaugural senior transaction since its creation in April this year from a merger between Islandsbanki and Icelandic Investment Bank. Price talk for the A2 rated deal is Euribor plus 21bp re-offered. Union Bank of Norway will launch its Eu400m-Eu500m five year floater next week via ABN Amro and UBS Warburg at a spread of 20bp area over Euribor. Banks with subordinated debt requirements are finding life more difficult. BNP Paribas successfully printed a $500m tier one deal this week but San Paolo-IMI's Eu1.1bn issue, due to be launched this week via IMI, JP Morgan and Morgan Stanley, has been postponed until market conditions improve. Crédit Lyonnais' subordinated dollar bond appears to have been postponed until next year and market participants question whether ING will be able to bring its $1.5bn issue through Goldman Sachs and Morgan Stanley. Banca Popolare di Milano is set to launch a Eu300m 10 year non-call five transaction via Merrill Lynch in two weeks' time.

France Télécom received a vote of confidence from continental European and UK investors this week when its long awaited Eu5bn equivalent multi-tranche euro and sterling bond was snapped up by investors eager to buy Europe’s highest rated telecoms company after roadshows that boosted confidence in the company.

France Télécom received a vote of confidence from continental European and UK investors this week when its long awaited Eu5bn equivalent multi-tranche euro and sterling bond was snapped up by investors eager to buy Europe’s highest rated telecoms company after roadshows that boosted confidence in the company.

The plight of the single European currency once again proved the main focus for the euro swap market and kept inter-bank business to a minimum. When various German think-tanks on Wednesday recommended that the ECB leave rates unchanged, despite the level of $0.829, Euribor futures remained reasonably well bid and the swap curve steepened by a basis point or two. The five year versus 30 year curve steepened 2bp to 52bp.

* Shares in financial advisory group AWD got off to a good start on Friday last week, rising by as much as 30% on their first day. The result is a relief for joint bookrunners Deutsche Bank and Morgan Stanley Dean Witter, who managed to get the company's Eu535m IPO done despite having to amend the prospectus twice and then price at the bottom of the bookbuilding range. "Particularly given the bad press we had during the bookbuilding period, we are very pleased," said one banker involved in the deal.

The low penetration of portable computers in Europe could prove a decisive factor for the Neuer Markt IPO of Austrian electronic notebook manufacturer Gericom, expected to raise about Eu100m. The research meeting for the deal took place this week, and analysts expect strong growth from the company. According to the company's research, while 80% of European households possess a computer, only 16% have a portable one.

US firm The Healthcare Company (HCA) issued £150m of 10 year high yield bonds on Wednesday - the day after Levi Strauss pulled a $350m issue in the US because of continuing adverse conditions. The deal for HCA, which was sole lead managed by Deutsche Bank, was priced with an 8.75% coupon.

Accusations flew this week as five of the six bidders in the Italian UMTS auctions walked away with licences for just Eu2.4bn each. Blu, backed by British Telecom and Autostrade, withdrew after talks aimed at persuading BT to take a majority stake in the group failed.

The Inter-American Development this week enhanced its reputation as a global market issuer by increasing the size of its 7% June 2003 bond by $1bn to $3bn. The deal proved to be a perfect instrument for investors looking for a safe haven at the short end of the dollar market as a refuge from continued volatility in the credit markets.

The Republic of Hungary surprised the market this week by launching an aggressively priced Eu400m tap of its Eu600m November 2005 floating rate note (FRN) issue via Bayerische Landesbank and Chase Manhattan. The benchmark Eu1bn issue is now the largest ever issue from Baa1/BBB+/BBB+ rated Hungary, as well as its only one this year, and the biggest public bond offering from central and eastern Europe.

Chase and JP Morgan's merged investment banking operation, to be called JP Morgan & Co, has a new global head of institutional equities, Steven Black. He comes from the Chase side. Also from Chase, Doug Braunstein and Jeff Walker have been made co-heads of M&A. Don Wilson and Bill Winters, who was head of interest rates and FX at JP Morgan, become co-heads of credit and rate markets.

Brazil The $150m trade finance loan being arranged by Citibank and HSBC for BankBoston SA (Brazil) has been oversubscribed and increased to $180m.