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* Genfinance Luxembourg Guarantor: Generale Bank

CHASE Manhattan and Deutsche Bank are preparing the syndication strategy of the $17bn global debt consolidation facility for DaimlerChrysler. Bankers say that the deal will not be offered to other institutions until the second week of June and that DaimlerChrysler will want its closest relationship banks to play senior roles.

DOLLAR swap spreads continued their sharp correction to wider levels at the beginning of the week. Five year spreads climbed to about 66bp and 10 year spreads to 80.5bp/81bp, a 10bp move in just one week. Nonetheless, secondary corporate spreads in the US moved by an average of 20bp-25bp in the same period, so arbitrage remained wafer thin.

THE Eu10bn sale of shares in Deutsche Telekom is generating keen interest among pan-European institutional and retail investors. The capital increase was not tied to the success of DT's bid for Telecom Italia and bankers say that, as a result, its chances of a successful sale have not been affected by Olivetti's victory over the German group for control of Telecom Italia.

Hungary Talk circulating at the end of the week that ABN Amro had won the arranging mandate for the Eu50m five year deal for telecommunications company Matav, was inaccurate.

* Banco di Napoli SpA Rating: Baa1/BBB+

EGYPT's Ezz Steel will shortly test sentiment toward Middle Eastern markets, with a circa $100m GDR offering. Led by Merrill Lynch and EFG Hermes, the deal, including a London listing, will be launched at the start of June. It will be completed by the end of the month. Bankers active in Middle Eastern markets say the transaction may take place against a background of improved sentiment toward the region, with some buyers increasingly looking at investment opportunities. During 1998, several planned new issues from the region were pulled as investors recoiled from putting money into all but the bluest-chip companies from developed and liquid markets.

Last week, it was strongly rumoured in the market that Fannie Mae had swapped some or all its $1.5bn long dated issue. On closer inspection this seemed unlikely, as 30 year swap bids firmed and the sub-Libor level available did not seem sufficiently attractive for such a premier borrower. However, early this week, the rumours resurfaced as swap sources said that Fannie Mae was taking 30 year bids. By Tuesday, some swap traders said that perhaps half of the issue had been swapped to floating rate.

CREDIT spreads rebounded early in the week, providing a brief respite for the Euromarkets. But continuing uncertainty facing financial markets was illustrated by the reversal in spreads seen in the US late Thursday when Treasuries and credit spreads widened by 3bp to 4bp and the Dow fell by 235 points to 10,466. Despite the nervous environment, the pipeline for euro issuance remains full and is dominated by French corporates.

MORGAN STANLEY Dean Witter is to run the books on the flotation of Future Publishing, the UK magazine publisher started in 1985 with a £15,000 bank loan. The group plans to list its shares on the London Stock Exchange and raise £165m in new money. The IPO could value Future at around £500m - a price that would leave the vendors pocketing a substantial profit.

LEAD ARRANGERS Chase Manhattan, Credit Suisse First Boston, Deutsche Bank and SG have overseen the signing of the popular $2.8bn (increased from $2bn) 364 day revolving credit for Glencore International AG. As the increase implies, syndication was well backed and heavily oversubscribed.