Search results for

The extraordinary, belief-defying and as yet still undetermined US election captured the entire attention of the markets this week. Business was paralysed and the interbank flow in the dollar swap market dried to a mere trickle, reported most shops. Customers are said to be sidelined until the dust settles - which could be a long time as a range of legal challenges to the chaotic voting in Palm Beach County, Florida, are considered. Moreover, the yield curve offers few attractive opportunities at the moment, say swap traders.

Electrolux will sign a euro500 million ($428.08 million) Euro-CP programme, the second Swedish facility of the year, within the next two weeks. Citibank is the arranger off the A-2/P-2 rated facility. Johan Bygge, chief financial officer at Electrolux, says: "Issuance depends on what else the group does and where the market liquidity is, but there is an increasing interest in A-2/P-2 paper from new investors." The dealers are the arranger, Fortis Bank, Goldman Sachs, Lehman Brothers and SEB Debt Capital Markets.

Brazil * Banco ABN Amro Real SA

* Banca Popolare di Lodi SCarl Rating: Baa1/BBB+

* ABN Amro Bouwfonds Nederlandse Gemeenten NV Rating: Aa2/AA

Euro swap rates fell by about 3bp on Thursday afternoon following another spate of unilateral intervention by the ECB to support the single currency. The euro has found support at $0.8575. Curve trades proved popular, said London dealers. The nine year versus 10 year trade was said to be popular, and went through at around 4bp. The two year spread was closing the week at around 30bp over cash, the five year was at 36bp-38bp over cash and the 10 year is 60bp-62bp over the July 2010 Bund. The 10 year versus 30 year curve is worth 16bp and the two year versus 10 year is worth 49bp.

* Bankers in the syndicate speculated that Deutsche Post will price below Eu20 a share from the range of Eu18-Eu23 despite a substantial oversubscription in the retail tranche of the Eu5.8bn-Eu7.4bn IPO. The conservative pricing is likely to come about because of the price sensitivity of institutions. "There are a number of institutions that have to buy this stock but given the way the market is behaving, it is proving hard to get others to sit up and take notice," said a banker.

Glas Cymru Cyfyngedig (Glas) breathed new life into the non-equity ownership model for UK water assets last week, after Western Power Distribution (WPD) announced it had agreed to sell Welsh Water to the not-for-profit entity for £1.8bn. Glas, which has been dubbed the "Welsh people's company", bid for Welsh Water earlier this year during the tussle between WPD and Nomura for the parent company, Hyder.

A week of skyrocketing spreads and interest rates in Argentina began to slow yesterday afternoon (Thursday) as the debt markets took hope from persistent rumours that the country is on the verge of announcing an emergency aid package with the IMF or the US Treasury that includes the replacement of its current economics minister, Jose Luis Machinea. Local reports yesterday suggested that Argentina may ask for as much as $16bn in emergency financing so that it can allay escalating fears that it will be unable to meet the $19.5bn of financing it needs in 2001.

A week of skyrocketing spreads and interest rates in Argentina began to slow yesterday afternoon (Thursday) as the debt markets took hope from persistent rumours that the country is on the verge of announcing an emergency aid package with the IMF or the US Treasury that includes the replacement of its current economics minister, Jose Luis Machinea. Local reports yesterday suggested that Argentina may ask for as much as $16bn in emergency financing so that it can allay escalating fears that it will be unable to meet the $19.5bn of financing it needs in 2001.

China Co-ordinator ABN Amro has been joined by a group of nine arranger banks including Banca Commerciale Italiana (Shanghai), Banca Monte dei Paschi di Siena, Bank Brussels Lambert (Hong Kong), Bank of China (New York), Bank One, Commerzbank (Shanghai), KBC Bank (Shanghai), Rabobank Nederland (Hong Kong) and Sumitomo Bank to launch the $200m 364 day LC facility for Sinochem American CP Inc.

Europe * Deutsche Bank 24 (Haus 2000-2)