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The superlative performance of major stockmarkets - in particular the US - in recent weeks has disguised the concern of investors which are focusing on the underlying factors bearing on the economy, the health of the corporate sector and the outlook for interest rates. "The fact that the Dow Jones Industrial Average moved through its highest barrier this week means nothing to broad-range investors," says one head of equity capital markets at one of the top three firms. "It simply shows that this index has become so narrow and concentrated that it bears no relation to the underlying demand for stocks in the market."

The Brazilian government's plea for understanding from the international banking community paid off in New York this week when 11 US and Canadian banks agreed to maintain their credit exposure to the country through to the end of August this year. New central bank president, Arminio Fraga, said in New York yesterday that trade and interbank lines amounting to around $28bn would be maintained at least until the end of August.

BT ALEX Brown will roll over the existing financing that backed Nomura Principal Finance's purchase of William Hill from Brent Walker to finance CVC and Cinven's acquisition of the UK bookmaker that took place in February. Nomura's purchase of William Hill in 1997 was backed by £400m of senior leveraged debt that comprised a £175m seven year term loan priced at 175bp over Libor (term 'A'), a £100m eight year term loan at 200bp over Libor (term 'B'), a £75m nine year term loan at 225bp (term 'C') and a £50m working capital revolver priced at 175bp but with a non-utilisation fee of 75bp.

The province of Buenos Aires this week issued a $150m three year bullet deal, its first in the dollar market in four years, but had to pay a huge concession over the sovereign curve to compensate for the small size of the transaction. The offering, led by Salomon Smith Barney, was originally talked at $100m with a yield of 12.5% to 12.75% and was ultimately launched at a yield of 12.5%, or 744bp over Treasuries.

Cades will next week launch a July 2013 inflation linked bond of around Eu1bn, complementing France's 2009 OATi and further enhancing the French agency's quasi-sovereign status. Arranged in co-ordination with the Trésor, the agency's 14 year issue is set to be followed by even longer dated issuance by France in the future.

* Commerzbank AG

SHARES IN UK property company Canary Wharf will be priced at between £2.80 and £3.50, according to the pathfinder prospectus published this week. The flotation, to be completed later this months, is being lead managed by Morgan Stanley Dean Witter. The indicative range values the company at between £1.4bn to £1.7bn before 160m new shares have been sold. After the sale, the group will be worth between £1.8bn and £2.33bn, less than bankers' initial expectations of a value nearer £2.6bn.

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Corporates have become the darlings of the European bond market. New issuance is running at record highs as investors look for paper yielding decent spreads at a time when government bond yields are low. The birth of the euro has created the opportunity for the corporate bond market to expand rapidly, providing a genuine alternative to the dollar for borrowers and a new asset class for investors. Several companies have already tapped the burgeoning investor demand by issuing large, liquid bonds in the new currency, and the queue of would-be issuers is lengthening all the time. But the syndicated loan market still provides powerful competition to the bond market. And many European companies are so cash rich that they have little need to visit the capital markets anytime soon. Will 1999 be the year when the European corporate bond market finally takes off? Or are investment bankers’ expectations running ahead of reality? Charles Olivier reports.