Much-needed fee revenue is starting to flow back into equity capital markets desks in the US as $1bn-plus deals get up and running for the first time since September 11. Last week's public offering for Principal Financial Group, the US insurer, at $1.9bn (&euro2.1bn) was the first $1bn equity sale in three months, and only the third offering at all since the attacks. Raytheon, the defence contractor, raised $1bn in a follow-on offering, and King Pharmaceuticals said that it plans to raise about $900m in stock alongside a $300m-debt offering.

Joe Morea, managing director in equity capital markets at UBS Warburg in New York, says: 'There has been a distinct pick-up in financing activity in the past two weeks. Companies have realised that they need finance for acquisitions. Some companies' stock has been performing well, and they have been taking advantage of that.'