Euro-denominated corporate supply is set to remain heavy in the New Year as the market continues to build on the positive tone that has prevailed since early November, bankers in Europe have said.

An unexpectedly high level of primary market activity has helped to allay concerns over how the market would recover in the wake of the September 11 attacks in the US, and new issuance has remained uncharacteristically strong well into mid-December. Bankers said the market has made up the ground lost in the aftermath of the attacks and volumes are back to normal.