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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.

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India Presentations were held this week by banks bidding for the arranging mandate for a $100m facility for Power Finance Corporation's (PFC).

FRAGILE AND VOLATILE global credit markets exacted a heavy price on the Federation of Malaysia's long awaited $1bn 10 year comeback bond this week. Priced well outside expectations, sliced in half, truncated to one tranche, and missing two syndicate members, the transaction managed to demonstrate Malaysia's ability to access the international capital markets.

GLOBAL co-ordinators Deutsche Bank and Enskilda are moving toward launch of the sale of stock in Perlos, the Finnish producer of plastic casings for mobile phones. The privately owned company is planning to make its debut on the Helsinki stockmarket in the second half of June and will offer international and local investors a free float of up to 49%. The two lead banks were mandated some time ago, after an extremely competitive beauty parade. They plan to launch the sale of Perlos shares during the week of June 7 and bookbuilding should lead to the release of an issue price during the third or fourth week of June.

* Lead manager Commerzbank scored a huge blow for the mid-cap sector of the German services industry this week with the launch of an IPO for Beate Uhse, Europe's leading retailer of sex goods, on to SMAX. Mid-cap corporate groups have largely been denied access to the equity capital market if they do not represent part of the country's high growth sectors or they choose not to obtain a Neuer Markt listing.

CREDIT Suisse First Boston has launched the sale of stock in Matav, Hungary's national telecom operator, which will raise Huf88.2bn ($370m) through the sale of the government's 60m shares. The sale will be the largest equity offering from central Europe since Estonia Telecom's flotation at the start of the year.

* World Bank Rating: Aaa/AAA