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* Samsung Electronics said this week that it will halve the size of its planned jumbo domestic bond issues following government pressure on the back of mounting yields. What would have been the largest single corporate bond deal in Korea's history has now been halved to Won500m ($360m) and will be launched three days later than scheduled on September 25.

The Asian Development Bank (ADB) established a new bridgehead for foreign borrowers in the Australian domestic market this week with its debut A$1bn transaction. Although bankers do not believe that the deal will presage a tidal wave of Kangaroo issues, all agreed that it had laid the successful foundations for what could become an important future market sector, should investors continue to seek triple-A rated proxies for dwindling sovereign and semi-sovereign supply.

Asia's only internationalised and thriving domestic debt market stands in danger of being brought to its knees following moves by the Hong Kong Monetary Authority (HKMA) to close speculative loopholes. Hong Kong debt market players were incensed by the government's latest action to stem pressure on the currency's peg to the US dollar by virtually closing down the Hong Kong dollar bond market.

The US retail preferred market witnessed a mini-onslaught from Australian banks this week with the launch of competing transactions by ANZ and National Australia Bank (NAB). Both banks used a proprietary structure designed by Merrill Lynch known as TrUEPrS (Trust Units Exchangeable for Preferred Shares) to improve their tier 1 ratios with transactions which partially mimic debt but count as equity for tax and regulatory purposes.

Market report Compiled by Glenn Blackley, RBC DS Global Markets, London.

LANDESBANK Kiel and WestLB have had to reduce the $150m multicurrency term loan facility for Bolig-og-Naeringsbanken (BN Banken) to $100m. The arrangers blamed the volatile market conditions for the cut in size. However bankers suggest that appetite for Norwegian debt has waned due to the enormous amount of debt required by Norwegian borrowers over the past nine months and particularly since June.

A renewed wave of volatility threatened to sweep through the financial markets in eastern Europe as a result of growing investor concerns over the measures proposed by Russia to alleviate its economic predicament. Western banks yesterday (Thursday) urged the Russian government to rethink the terms of a debt workout scheme where domestic investors would receive preferential treatment over international investors, which hold an estimated $15bn-$17bn of GKOs.

Denmark ABN Amro, Citibank and Bank of Tokyo-Mitsubishi have closed the co-arranging phase of the $500m credit for Borealis, the Danish petrochemicals company.

Market commentary Compiled by Tawanda Nyandoro, RBC DS Global Markets, London. Tel: +44 171-653 4870

* European Investment Bank Rating: Aaa/AAA

The Swiss government has moved into the final stage of its privatisation of shares in Swisscom AG. The Swiss authorities revealed this week its intention to sell just 30% of the national operator, and at a conservative valuation range. The government's decision to proceed with a smaller than expected divestment at a more generous price is the first concrete sign that even safe haven stocks from traditionally safe-haven markets are vulnerable to the upheaval in world stockmarkets.

Hopes that some stability may return to the international bond markets built up early in the week but were snatched away again yesterday (Thursday) by yet another sharp fall on the world's equity markets. This time, the reasons for the short lived nature of the confidence were two-fold: first, concerns reappeared about Brazil's ability to withstand a potential withdrawal of international capital; second, Fed chairman Greenspan and the UK monetary policy committee dampened hopes that imminent rate cuts would be introduced to help ease the global financial and economic crisis.