European credit indices moved tighter on Wednesday as stock markets rallied, while bond sales from the likes of Nokia, Accor and KPN took investment-grade supply over 40 billion euros ($52.9 billion) so far this month. By 1538 GMT, the investment-grade Markit iTraxx Europe index was at 151.75 basis points, according to data from Markit, 4.25 basis points tighter versus late on Tuesday.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 1,019 basis points, 21 basis points tighter. The primary market saw a host of new issues with mandates coming from telecoms firm Nokia, hotel group Accor, energy network operator National Grid and Spanish savings bank La Caixa amongst others.
The new issues have taken investment-grade euro-denominated bond supply soaring over 40 billion euros for the month after smashing through the previous monthly record of 25 billion euros just half-way through January. Virtually all the bonds have tightened guidance at pricing and many new deals have been oversubscribed and tightened after launch, showing good performance.