Markets bustling before the recess (TT JulAug09 p8)

Last year’s big drug deals are helping inject life into the heftier end of the eurobond market. Novartis, the pharmaceuticals giant, has launched a seven year E1.5bn eurobond paying 4.25% with a spread of 95 basis points over midswaps.

The deal follows last year’s $11bn acquisition of a 25% stake in eye-care company Alcon from Nestlé which came with an option to buy Nestlé’s remaining 52% holding in 2010 at an as yet undetermined price.