Search results for

* Deutsche Bank - DB Ireland plc Guarantor: Deutsche Bank AG (London)

HOPES FOR a strong beginning to the new year in the US dollar market for emerging market issuers were deflated this week when Brazil postponed plans for a $1bn 20 year global bond. The republic was planning to issue the bond this week via Goldman Sachs and Chase. But wildly gyrating US equity and Treasury bond prices and the prospect of large emerging market supply sent emerging market spreads gapping out by more than 60bp. The JP Morgan Emerging Market Bond Index Plus (EMBI+) went from 782bp on Monday to 844bp by midday yesterday (Thursday).

Poland Arranger Bankgesellschaft Berlin has signed banks into the Eu100m transaction for Bank Slaski after the popular deal was increased from Eu30m. Many of the participants are new investors in the name, with a wide range of nationalities.

FOLLOWING the recovery in the fortunes of central and eastern European issuers in the Euromarkets in 1999, a number of the region's sovereigns are planning to tap the international bond markets in early 2000 to take advantage of the strong investor momentum behind emerging markets. In 1999 JP Morgan's widely followed EMBI+ index rose 25.97%.

German-US automaker DaimlerChrysler is to issue $2.5bn of global notes this week. Senior treasury manager Tim Dykstra declined to offer more details, saying that no decision had yet been taken. The debt is to be issued on behalf of the firm's North American financial services operations. It is this piece of information that persuades most New York swap traders that a considerable portion of the borrowing will be swapped to floating. Like GMAC and Ford Motor Credit, DaimlerChrysler offers American customers lease deals, most of which are denominated in floating rate. Dysktra would not comment on this aspect of the borrowing and dealers at Deutsche and Goldman were also unsurprisingly coy.

Argentina * Republic of Argentina

* Bancaja International Finance Guarantor: Caja de Ahorros Valencia Castellon y Alicante

* AIG SunAmerica Institutional Funding II Rating: Aaa/AAA

RABOBANK and the International Finance Corporation (IFC) have closed the first securitisation of existing onshore Turkish assets with Garanti Leasing IFC Finance Ltd. The $43m equivalent deal parcels equipment lease receivables originated by Istanbul-based Garanti Leasing - a subsidiary of Garanti Bank. It achieved a rating of Baa2/BBB from Moody's and Duff & Phelps, five notches above Turkey's sovereign foreign currency debt rating.

IN DOLLAR MARKETS, underwriters anxiously await the pioneering $3bn global bond for the World Bank to be lead managed by Goldman Sachs and Lehman. The deal is the first fully integrated on-line bond and market participants are expecting a 10 year deal priced in the low 60s over Treasuries. This level indicates that the borrower has drastically compromised its funding targets to achieve internet fame. A low 60s spread translates into the minus Libor 16bp area, a far cry from the World Bank's customary minus 25bp ceiling. Also in the global arena, DaimlerChrysler will shortly launch a $2.5bn transaction via Deutsche and Goldman Sachs. The package is expected to comprise a two or three year FRN and a five year fixed rate tranche. After a quiet first trading week, the pipeline in euros is gaining momentum. FRNs are planned for Crédit Lyonnais (Eu500m five years at 27bp/28bp over Euribor via Crédit Lyonnais and Goldman Sachs), Bank of Ireland (Eu500m five years at around Euribor plus 15bp via Merrill Lynch), Banca di Roma (Eu775m three years at Euribor plus 30bp via ABN and Goldman Sachs). Investitionskredit Bank (OIK) has mandated BankAustria and Chase Manhattan to lead manage its forthcoming Eu250m five year transaction at Euribor plus 16bp. Global Pfanbriefe in the five to seven year area are expected from EssenHyp (up to Eu3bn via Commerzbank, Dresdner and MSDW) and RheinHyp (Commerzbank, CDC, MSDW), while DePfa plans to up its 2005 and 2010 globals. Meanwhile, Commerzbank hopes to launch a Eu1bn 10 year with joint bookrunner ABN Amro at around Euribor plus 18bp. KfW is said to be looking at a jumbo five year. A mixed bag of corporate deals are in prospect. Pearson is planning roadshows for a Eu500m seven year bond via Dresdner and JP Morgan at around Euribor plus 60bp. Greek Telecom OTE will finally kick off roadshows for its long awaited Eu800m seven year bond, which has been mandated to Merrill Lynch, Morgan Stanley and National Bank of Greece. Chase and IMI have been linked to a Eu300m to Eu500m five year bond for Parmalat in the 50s over Euribor. And Goldman Sachs and JP Morgan are planning an up to Eu500m five to seven year issue for A3 rated US corporate Corning in February. ANZ is still readying a benchmark with leads Deutsche and Merrill Lynch. The yen market is slowly coming back to life with the first transaction of the year set to be a ¥20bn five year bond for the Bank of Nova Scotia. The deal will be priced later today (Friday) by lead manager Tokyo-Mitsubishi International.

Market commentary: Compiled by Jim Webber,

It was a volatile start to the new century in the dollar swap market. Equities began the week poorly and swaps bids strengthened. On Monday mid-markets widened by 3bp but then retracted their steps on Tuesday, in line with a better equity market and weaker bond market. By Wednesday levels were in the middle of this range and yesterday (Thursday) five years firmed to a mid-market of 69 while the 10 year mid-market was 78. The swap market, however, is not simply following or reacting to its bigger cousins on Wall Street. It is also responding to the likely imminence of considerable amounts of new debt. As investors are laughingly awash with disposable capital, any such debt is likely to be eagerly snapped up. Consequently, bond and agency desks will not be making great use of swaps to hedge unsold inventory.