European credit indexes were slightly wider on Monday while Germany's Fresenius announced what could amount to the first European high-yield bond issue since the start of the credit crisis in July 2007. Healthcare group Fresenius said it planned to sell $650 million of bonds in euros and dollars to repay part of an acquisition bridge loan.
Fresenius five-year credit default swaps were about 60 basis points wider at around 380 basis points, according to market data, while its 500 million euro bond, which matures in 2016, was about four points lower, bid at 86 percent of face value, a trader said.
Meanwhile the volume of investment grade borrowers rushing to raise funding continued with BMW and Iberdrola among others tapping the market. By 1612 GMT, the investment-grade Markit iTraxx Europe index was at 159.75 basis points, according to data from Markit, 2.75 basis points wider versus late on Monday.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 956.25 basis points, 12.25 basis points wider. German carmaker BMW set guidance on a planned three-year euro benchmark bond at mid-swaps plus 370 basis points, one of the banks managing the sale said, extending a rush of new bond supply which topped more than 11 billion euros ($14.7 billion) last week. Spanish utility Iberdrola also tapped the bond market, with plans to raise at least 400 million euros via an increase of two of its existing bonds.