To illustrate how much the mood in the European debt capital markets has transformed over the last three months, one senior banker recalls a conversation in mid-December with one of the largest credit investors in the region. Scary technicals, an issuance drought and a lack of liquidity had combined to make the frustrated investor extremely pessimistic – most of his portfolio was invested in indices rather than cash.

Less than two months later, the same investor was one of the biggest participants in senior unsecured deals on a cash basis. "This very considered investor had undergone a dramatic change in position in four to six weeks," said the banker.