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AFTER this week's well received deal for industrial issuer, Ifco, the high yield market has returned to more familiar territory, with a range of telecoms companies and high-tech stocks lining up. Transactions from carriers' carrier, Flag Telecom, and Slovakian wireless operator, Eurotel, are close to being priced, following roadshows this week. Salomon Smith Barney is bookrunner on both transactions, which are expected to add $600m equivalent of 10 year supply and Eu150-Eu200m of seven year paper to the market. The Eurotel transaction has been rated B2/B.

The Vodafone Airtouch jumbo, launched at Eu30bn as the largest ever syndicated loan, has raised a total of Eu65.5bn in its sub-underwriting phase and provides the clearest evidence of the depth of European loan market liquidity. The Vodafone facility has moved fast from being one of the market's most challenging liquidity tests into what some bankers called a "no-brainer".

THE UK market provided a mixture of the old and new economy this week with a placement of Royal Bank of Scotland (RBS) shares and a controversial increase in the price range for lastminute.com. Salomon Smith Barney and Schroders sold 34.85m RBS shares for Banco Santander Central Hispano (BSCH) this week, raising £306.68m.

* CIT Group Inc Rating: A1/A+

The $4bn loan for UK utility PowerGen should be launched to sub-underwriting co-arrangers early next week, via the five arrangers Deutsche Bank, Dresdner Kleinwort Benson (books), HSBC (agent), JP Morgan and Warburg Dillon Read (books). The banks have made equal underwriting commitments. The debt is divided into three tranches: a $1.5bn one year facility with a term out option; a $1.5bn five year term loan; and a $1bn five year revolver.

* Liberty Lighthouse Capital Co Rating: AAA/AAA (S&P/Fitch IBCA)

SPREAD volatility and equity market gyrations created a challenging background for the few issuers willing to brave dollar markets. The only issuance was global, from US borrowers looking to leverage strong domestic demand and entice European and Asian investors. Most successful at this was Fannie Mae which this week launched a rare seven year benchmark, a $4bn 7.125% March 2007 transaction that enjoyed robust overseas demand, with some 15% of its bonds placed in Europe and 27% in Japan.

Austria Merrill Lynch has wrapped up general syndication of the Eu120m senior leveraged debt package backing the recapitalisation of Steiner Industries. Banks were offered a choice of two tickets - Eu15m for a participation fee of 65bp and Eu10m for a fee of 50bp.