European corporate bonds ended unchanged in average value on Friday in thin trading, as the euro credit market ignored the latest US economic data and looked forward to next Tuesday's US presidential election.
The FTSE Euro Corporate Bond Index showed investment-grade corporate bonds in euros yielding an average 50.6 basis points more than similarly dated government bonds at 1501 GMT, same as Thursday.
Alison Miller, a strategist at ABN Amro, said the US election was unlikely to make a major difference.
"Both (George Bush and John Kerry) have promised fiscal discipline...there is not much between the two. Potentially it may be a bit slower before the election, people may see it as an excuse not to do much," Miller said.
Widely held General Motors' 8.375 percent euro bond due in July 2033 spend most of Friday trading mostly unchanged at 310-313 basis points more than government.
Its rival Ford's 5.75 percent euro bond due in January 2009 was also unchanged at 160 basis points above government debt.
Portugal's second largest listed bank, Banco Espirito Santo (BES), plans to sell a 1.2 billion euro residential mortgage-backed bond, a source close to the deal said on Friday.
Roadshows run from next Tuesday to Friday, and pricing is expected the week of November 8. Price talk should be available by the end of next week.
ABN Amro, Calyon, BES unit Espirito Santo Investment and Lehman Brothers are joint lead managers of the deal. The bonds are being sold via special purpose vehicle Lusitano Mortgages No. 3 Plc.
Also, British property firm Land Securities Group Plc replaced 1.8 billion pounds of unsecured debt with a record sale of 2.298 billion pounds of asset-backed debt.
After the exchange, bondholders will hold paper rated four notches higher on the credit rating scale than the previous debt, with AA ratings from both Standard & Poor's and Fitch Ratings.
Land Securities' new asset-backed bonds are backed by the majority of the group's eight billion pound portfolio, which includes Scotland Yard police headquarters in London and the neon billboards in the capital's Piccadilly Circus.
The new notes range from April 2007 to July 2032 in expected maturity.