The iTraxx senior financials index was 5.5bp tighter at 210bp, while bankers said cash spreads were around 5bp tighter on the day. Danske Bank’s recent two year, however, was still wider than re-offer, at between 112bp and 115bp.
“Most of the widening yesterday was in CDS and indices, and most of that has recovered this morning,” said a FIG syndicate banker. “It feels like there are a couple of trades floating around waiting to come. There is a pretty wide variety of issuers looking at the market — if we walk in on Monday and the market feels good, we could definitely see some issuance.”
Sweden’s SBAB is a hot pick for the next senior deal, having recently completed a series of investor meetings.
France’s BPCE launched a tender offer on Thursday for €3.125bn of senior debt, split between four different bonds.
The bank is offering to buy back any and all of its floating rate November 2012s at par, its December 2012s at 101 and its October and May 2013s at 100.15. The bank said it was aiming to extend the average maturity of its debt.
Natixis is dealer manager for the buyback, which will close at 4pm CET on Friday March 16.