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As the bidding for the five third generation telecoms licenses continued to escalate beyond all expectations this week, Orange is thought to have increased the volume of its loan facility to support its bid. The mobile phone operator, which is to be divested from Vodafone Airtouch, brought together Chase Manhattan (books), CIBC (documentation), Dresdner Kleinwort Benson (books) and HSBC (agent) to underwrite a £3.5bn loan facility about a month ago.

EASDAQ reported a record first quarter this week, helping its drive to be a stronger contender in the race to create a large pan-European exchange. During the quarter there were five new listings on the exchange, while 19 new stocks were added as part of a move to change Easdaq from simply a new listing exchange to a trading platform for a variety of European and US stocks.

Freddie Mac last week survived debt markets battered by falling stockmarkets and widening swap and credit spreads by successfully reopening its five and 30 year Reference Securities. While other issuers felt it appropriate to postpone their transactions, Freddie Mac stuck to its programme, but sized its deals at the lower end of the range to avoid overwhelming the market at a time when there were question marks over such big supply being absorbed. The January 2005 Reference note was reopened for $2bn and the September 2029 for $1bn.

While mortgage banks have been responding to growing European competition from foreign banks and regulations, Rheinische Hypothekenbank last month used a novel securitisation to boost its international ambitions. Alongside lead manager Barclays Capital, Rheinhyp launched the first euroland securitisation of commercial mortgages, a Eu1.345bn eight tranche deal called Europa One.

WHILE mortgage banks have been responding to growing European competition from foreign banks and regulations, Rheinische Hypothekenbank last month used a novel securitisation to boost its international ambitions.

SALOMON Smith Barney has been tidying up its M&A group just three weeks before the expected completion of its merger with Schroder. It has also managed to lure an ex-Schroder employee back to investment banking after a gap of three years.

ROMANIA has been taking bids this week from banks on an up to Eu300m bond issue with a tenor of between three to five years. The country is eager to re-establish a sound benchmark in the international debt market after its first issue since 1997. But bankers warn it will not be easy. "It will be a difficult trade," said one banker. "Even in a strong market it would have to pay up. Right now I can't see it having a chance."

Denmark The Eu50m five year revolver for Roskilde Bank, arranged by LB Kiel, has been wrapped up. It was oversubscribed and will be increased to Eu72.5m when it is signed at the end of April.

* Rabobank Nederland NV Rating: Aaa/AAA/AAA

One of the winners of Spain's five new UMTS licenses, Retevisión Movil, is tapping the loan market for a performance guarantee facility. The deal's launch is imminent. The borrower is looking for a loan worth just over Eu1.9bn, and has enlisted five arrangers to underwrite the deal. They are Ahorro Corporacion Financiera, Barclays Bank (documentation), BSCH (domestic bookrunner and agent), Commerzbank (information memorandum) and SG (international bookrunner).

After years on the offensive, German mortgage banks are being forced on to the back foot. While issuers of obligations foncières in France are offering investors liquid alternatives, mortgage banking associations across Europe are preparing proposals that could neutralise the competitive advantages that the German Pfandbrief market has long enjoyed. Most immediately, mortgage banks face a threat from Luxembourg-based entities exploiting greater freedom in their collateral pools. Philip Moore investigates the pressures on German mortgage banks and how they are responding.

Not only did dollar swap spreads penetrate yet new highs this week, but the market traded in a very wide range. The top of the market was about 143bps over the 6.50% February 2010 Treasury, while yesterday (Thursday) it was testing new lows at around 127bps over the note. Mid-week, the mid-market at five year swaps was more than 100bp over the 5.875% November 2004 Treasury. Some New York traders suggested that this extreme volatility had left blood on the streets. But although it is inevitable that swings of this magnitude will leave some houses on the wrong side of the market, the scale of the losses is a matter of debate.