Credit investors are cautiously optimistic about the health of the European investment grade corporate bond market after issues from Germany utility E.ON, chemical producer BASF and drug maker AtraZeneca in the wake of three months of turbulence that pushed risk premiums close to levels not seen since the financial crisis of 2002.

The reinvigorated sentiment comes on the back of the US Federal Reserve, European Central Bank and Bank of England interventions to support liquidity in credit markets in the last month and a tentative return of some high-grade companies to the primary new issue market.