Search results for

8788

The strategy behind Fannie Mae's benchmark note programme came into sharper focus this week as the US agency's $3bn 10 year issue coincided with the Treasury's announcement of a revamp of its debt issuance programme on the back of falling financing needs. Fannie Mae priced its deal, led by Credit Suisse First Boston, Lehman Brothers and Morgan Stanley, just as the Treasury's plans were hitting the screens on Wednesday.

THE REPUBLIC of Finland supplied the final piece of the euro-fungible jigsaw this week when it became the first Emu founder member country to launch a euro denominated transaction structured as a domestic government bond. Sweden, an opt-out in the first wave of Emu, launched a similarly structured Eu2bn bond just over two weeks ago. Launched by JP Morgan and Paribas, this week's Eu2bn transaction marks Finland's determination to increase international participation in its government bond market. Despite a long history of successful Eurobonds, international buyers are relatively rare in the Finnish domestic market.

ARGENTINE corporates Movicom and Disco managed to launch successful 144a deals this week, even though yet another wave of Asian woes hit the emerging markets. Supermarket chain Disco brought a two tranche deal led by JP Morgan and UBS at 350bp over Treasuries for the $100m five year tranche and 430bp for the $250m 10 year portion.

THE REPUBLIC of Argentina has once again launched a ground-breaking bond structure in the emerging markets with an oversubscribed Ecu750m 30 year strippable zero coupon issue that gives an all-in cost inside of its plain vanilla dollar curve. Despite extremely poor market conditions, investors swamped sole lead manager ABN Amro with orders for what is the first emerging market deal offering a range of zero coupon strips in various maturities from three to 30 years.

Market commentary Compiled by Gerard Perrignon, RBC DS Global Markets, London. Tel: +44 171-865 1759

* Canadian Imperial Bank of Commerce Rating: Aa3/AA-

A TWO tranche Euro 144A issue comprising dollar and Deutschmark components was launched this week for Derby Cycle Corp, the biggest manufacturer of bicycles in the world. Both tranches were 10 year transactions with call options in year five and annually thereafter. The $100m element pays a 10% coupon while theDM110m issue pays a 9.375% coupon to give a yield to maturity of 9.44%.

INTERNATIONAL issuers this week continued to expand the range of central and eastern European currency instruments available to investors with the European Bank for Reconstruction & Development (EBRD) launching its fourth Russian rouble denominated Eurobond and Finland's Merita Bank issuing its second Latvian lats denominated offering. ING Barings and the EBRD continued their partnership in the rouble Eurobond sector with the launch of a Rb600m four year zero coupon offering. The transaction was both the first four year issue in the currency and the first to feature a zero coupon. It was priced to yield 31% on a fixed re-offer price of 33.96, equating to a pick-up of around 2,600bp over US Treasuries and 2,450bp over German Bunds. In mid-March the EBRD was the first issuer to launch an international bond denominated in roubles -- a Rb400m (increased from Rb300m) one year coupon bond -- and has since issued two and three year offerings. ING Barings has been the lead manager on each occasion.

Malta * Freeport Terminal (Malta) Ltd

* Bank Nederlandse Gemeenten Rating: Aaa/AAA

* Crédit Commercial de France Rating: Aa3/A1