European primary bond markets showed no signs of slowing down on Friday, with issuance expected from across the financial and corporate spectrum. The most watched deal remains the Nation-wide RMBS transaction. Expectations are that the deal will price today. It should be 3.5 billion pounds ($5.83 billion) in size, increased from 2.5 billion originally.
The backdrop remained largely supportive for credit with strong investor appetite for new issues. Investors in subordinated bank capital received positive news from Banco de Sabadell when it said it would redeem a lower tier 2 bond that it had previously said it would not call.
By 1030 GMT, the investment-grade Markit iTraxx Europe index was at 82 basis points, according to data from Markit, 2 basis points tighter versus late on Thursday. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was 494 basis points, 10 basis points tighter.