Thin secondary trading keeps spreads stuck too wide for issuers

Syndicate desks were hoping to see a small amount of opportunistic FIG issuance speckle the pipeline this week, but it may be difficult to convince issuers to come to market, as thin trading on the secondary market is preventing spreads from tightening. That left regulatory changes and the latest twists in the Banco Espirito Santo tale as the key items occupying most bankers' thoughts this week.