Sovereign Bond Spreads, 7 September 2001 ,
 Sovereign Bond Spreads:

=20

Significant New Issuance - CSFB Commentary:

?=09The first week of September was extremely positive for the region with =
a significant increase in secondary trading volumes and bond prices. Relati=
ve financial stabilisation in Argentina removed pressure from Latin America=
n and other emerging markets, shifting the focus to the impact of local fac=
tors on prices in each region. It was a busy week in the Turkish market, wh=
ich started initially on a weaker note because of the disappointing inflati=
on data released on Monday, but then recovered to follow other Eastern Euro=
pean markets and closed around 1.5 points higher on the week. The long awai=
ted resignation of the Minister of Public Works added to the positive senti=
ment in the market. The Russian market rallied this week, first on the back=
 of Latam stabilisation and then encouraged by the Moody's rating upgrade (=
see below). Prices peaked on Thursday, immediately after the upgrade, but f=
ailed to stay at those levels due to profit taking and a sliding Latam mark=
et, closing only one point higher than last Friday. Central and Eastern Eur=
opean investment grade assets remained stable throughout the week, which is=
 a good sign given the sell-off in US Treasuries. Other countries in this r=
egion gained around ? point, with Romania being the best performer gaining =
? point.
?=09On Wednesday, Moody's raised the ratings of outstanding Eurobonds of th=
e Russian Federation to B2 from B3 and changed the outlook for all hard cur=
rency instruments to "positive" from "stable." Moody's noted that Russia's =
recent economic performance and tax reforms have generated twin surpluses (=
current account and budget) and large foreign currency reserves. In combina=
tion with some debt relief, these factors have made the country's capacity =
to service its debt much greater.
jarek.astramowicz@enron.com, john.bottomley@enron.com, s..bradford@enron.com, 