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Despite recent market turbulence and wider secondary spreads, demand for new issue high yield product appeared to be holding up well this week with the successful pricing of a £250m equivalent 10 year transaction for broad band operator Energis. Lead managed by Goldman Sachs, the deal was split between a £125m tranche priced at a spread of 450bp over Gilts and a $200m tranche priced at a spread of 387.5bp over US Treasuries.

n Bank of Scotland Treasury Services plc Guarantor: Bank of Scotland

Argentina turned its focus to European retail investors as the best of an unappetising list of funding options to sell Eu350m of five year bonds, as the republic gears up to sell at least a further $2.5bn in the international bond markets before October. The deal, led by Morgan Stanley Dean Witter, was increased from an original Eu250m after trading up on the break as retail investors saw its relative value against other, more expensive euro-denominated paper from Argentina.

Asia n Hong Kong Turbo Mortgage Funding Ltd

Brazil is calling on banks for bond proposals in dollars and euros as it readies itself to tap the international markets again, as early as this month.

Cemex adopted a cautious approach to the shaky Latin new issue market in dollars this week to raise $250m of three year Yankee bonds. Although the deal was initially expected to be $200m to $300m in size and in the 350bp spread area, nervous markets ahead of the Fed's FOMC meeting in late June convinced lead managers Chase (books) and Salomon Smith Barney to take a more prudent approach to the new issue market. The leads first launched the deal at $200m and at a 362.5bp spread before increasing it to $250m.

BAYERISCHE Landesbank and WestLB have won the mandate to arrange a £150m new money deal for Chelsea Building Society. Details are still sketchy, although it is understood that the loan has a maturity of five years. The loan is the latest in a string of facilities for financial institutions in the British Isles. Other deals in the market - or on the verge of being launched - include the £250m five year credit for West Bromwich Building Society arranged by Barclays and Bayerische Landesbank, the Eu500m facility for First Active of Ireland that is still to be officially mandated and the £100m deal for Cheshire Building Society that is being arranged by ABN Amro and Barclays.

Colombia's highly coveted investment grade rating from Moody's Investors Service hung in the balance yesterday after the rating agency put the country's Baa3 long term foreign currency ceiling and the Ba1 ceiling on its bank deposits on review for possible downgrade. Yields on Colombia's investment grade 2009 10 year dollar bond have jumped to over 12.5% from 10% just a few weeks ago, in anticipation that Moody's would ultimately downgrade the country to sub-investment grade status.

DEUTSCHE Bank has completed the set up of its global loans team after its merger with BT Alex Brown officially took place last week. In New York, Kevin Sullivan takes over as managing director and head of loans, responsible to North American and Latin American business. He was previously managing director and head of loans at BT Alex Brown in New York. W Jefferson Stuart, managing director and head of US loans at the old Deutsche Bank will report to Sullivan.

Dollar swap spreads ended the week better bid, with the 10 year swap at about 79.5bp and the five year sector trading yesterday (Thursday) at 66.25bp. Dollar bond spreads moved out in line with widening corporate secondary spreads. On Thursday, US corporate secondary paper worsened by about an average of 3bp; the agency sector was particularly badly hit, with spreads to swaps tightening to what dealers said were historical lows.

Deutsche Telekom's Eu10bn capital increase has got off to a flying start, with the share price rising strongly this week on the back of an enthusiastic response to the start of the pan-European retail offer. The structure marks the first time that a vendor has attempted to reach retail investors throughout the eurozone in this way. The syndicate for the retail offering is hefty, comprising 29 regional co-lead managers and co-managers.

Czech Republic Expect more news next week of a DM100m non-recourse project finance deal for a Czech manufacturing corporate. The 8-1/2 year deal is arranged and fully underwritten by RZB and the corporate will be joined by close relationship banks.