Europe

European credit spreads enjoyed a unanimous rally on Thursday as the odds of the UK leaving the European Union receded.

Market indicators suggest the UK will vote on Thursday to remain part of the European Union, with riskier assets outperforming safe haven instruments — meaning the public sector bond market could reopen next week.

As UK voters made their way to the polling stations, Europe’s investment grade corporate bond market geared up for a frantic Friday, when the referendum’s results are announced.

Greek government bonds were the strongest performer in the eurozone on Thursday, with yields plunging after the European Central Bank reinstated a waiver that allows the use of the paper as collateral in monetary policy operations.

A British vote to leave the European Union could lead to the reopening of a spat between the Bank of England and the European Central Bank over clearing euro-denominated trades. Last year, the UK won a court battle in the European Court of Justice, keeping the right to clear euro-denominated trades outside the eurozone.

Several more Russian companies could issue Eurobonds following the successful placement of nearly $2bn of corporate paper from the country this month, said analysts this week.

Corrado Passera is the favoured candidate to become the next chief executive of UniCredit, but the bank’s international investors are on a collision course with its board over the appointment of a successor to Federico Ghizzoni, who stepped down last month.

Novo Banco is looking to buy back up to €500m of its outstanding senior bonds to take advantage of the low cash price of its bonds and to reduce its funding costs.

The European Central Bank has said it will allow Greek banks to participate in its regular refinancing operations, potentially slashing their funding costs.

The European Central Bank could soon rule German senior debt ineligible for repo transactions, dealing a blow to the country’s plans to subordinate the asset class.

Novo Banco is looking to buy back up to €500m of its outstanding senior bonds, as it looks to take advantage of the low cash price of its bonds and reduce funding costs.

Leveraged loan investors this week showed healthy appetite for core European deals as French data processor Tessi and German jewellery maker Amor began marketing their acquisition loans.