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Credit Suisse First Boston and Morgan Stanley Dean Witter this week lead managed the second multi-currency, multi-tranche issue for the Republic of Lebanon. Following two week of roadshows in Europe and the US earlier this month, the B1/BB-/BB- rated Middle Eastern sovereign issued over $700m equivalent of Euro/144A debt on Wednesday, split between a Eu300m seven year euro portion and a $400m (increased from $350m at launch) 10 year dollar piece.

The Republic of Argentina will reach new heights in bond innovation next week when it launches a $1.5bn six tranche zero coupon global bond that offers credit enhancement through a World Bank rolling guarantee on the principal. The deal, led by JP Morgan and Goldman Sachs, is Argentina's solution to the dire state of the US dollar market and the country's inability to issue a dollar bond since April.

National Westminster Bank demonstrated the range of capital raising opportunities now on offer in the international bond markets when it raised $3.95bn of subordinated debt to help finance its acquisition of Legal&General this week.

Note: This story went to press before Bank of Scotland launched its hostile takeover bid for National Westminister Bank today (Friday). The move has thrown NatWest's bid for Legal&General into doubt and widened NatWest's credit spreads, particularly on the bonds referred to in this story. The implications for this deal are unclear. National Westminster Bank demonstrated the range of capital raising opportunities now on offer in the international bond markets when it raised $3.95bn of subordinated debt to help finance its acquisition of Legal&General this week.

Dollar swaps bucked their volatile trend of the past few weeks as the 10 year swap spread was range bound after the expected September deluge failed to materialise. Ten year swaps traded between 91bp and 94bp for most of the week, before settling at around 92.5bp mid-market yesterday (Thursday). The five year is dealing at around 77bp/78bp.

Duke Capital and Goldman Sachs set the trend in the US market this week by issuing blow-out global bonds. Duke, led by Merrill Lynch and JP Morgan, made its debut in the global market with a $1.5bn three tranche offering that was increased by $500m and priced at the tightest end of a revised spread talk. Goldman launched an own account $1bn 10 year deal, increased from $750m.

Criticism of the European Investment Bank's EARNs programme grew this week following the supranational's decision not to launch a new benchmark, but to reopen an existing line. Under the programme announced in early March the EIB is committed to raising Eu2bn each quarter through benchmarks of at least Eu2bn or through the reopening of outstanding EARNs.

General Motors Acceptance Corporation launched a Eu500m 4.5% three year note this week, yielding 4.47% at the re-offer or 50bp over the 4.5% 2002 Obl. All-in, the deal yielded 4.54% or 57bp over the Obl. A spokesperson for the borrower confirmed that the proceeds had been swapped to dollars, and that an after-swap cost of Libor plus about 30bp had been achieved. This cost is line with comparable US borrowing, she added.