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A continuation next week of the European credit market’s recent rally will depend on its ability to absorb new bond issues, say traders, with a flurry of “post-Greece, pre-summer” deals looking increasingly likely.

Deutsche Pfandbriefbank, nationalised during the financial crisis, made its stockmarket debut on Thursday and traded up 6.5%, after pricing its IPO on Wednesday evening at the bottom of the range.

Glimmers of light are shimmering through the thicket of obstacles to euro issuance for public sector borrowers — but little benchmark supply is expected to join a scheduled supranational issue.

A strong performance from issuers in dollars this week means that more borrowers should look at printing in July, said SSA bankers.

Italian national airline Alitalia capitalised on an issuance window this week to print its first bond under a new ownership structure, which took effect early this year. The company sold the bond as a private placement, and comes as bankers suggest more corporate borrowers could issue in the format after weeks of sluggish activity in public markets.

The eurozone periphery has enjoyed a turnaround after several weeks of rising borrowing costs at auctions, as Greece and its creditors took several steps towards a third bail-out package for the country.

Corporate bond bankers are gearing up for a midsummer surge of dealmaking, with issuers looking likely to take advantage of renewed risk appetite to clear out a pipeline that has looked worryingly blocked since early June.

French smart card manufacturer Linxens has launched $1bn of leveraged loans to back its buyout by CVC. The deal has a hefty dollar slice.

Rocket Internet, the German internet business group, raised €550m this week with a convertible bond that was criticised by rival bankers, but according to bookrunner JP Morgan was “a super-successful transaction”.

After a month of speculation, Verallia, the French glass bottle maker, has come to market, setting a Friday bank meeting for €1bn of leveraged loans to back its buyout by Apollo Global Management.

The high-grade dollar market enjoyed a dramatic rebound as corporates exploited calm in the markets to print a deluge of deals that pushed July issuance to record levels.

The covered bond market proved itself fully open for business this week with eight issues taking in more than €7bn of orders combined.