Bank debt is the safest relative to corporate bonds in almost 16months amid confidence Europe's political leaders will step upefforts to end the region's crisis when they meet this week.

The Markit iTraxx Financial Index of credit-default swaps on thesenior debt of 25 European banks and insurers fell for a fifth dayand now exceeds a broader measure of 125 investment- gradecompanies by 49 basis points, compared with 120 basis points inJuly. The European Financial Stability Facility, the region'stemporary bailout fund, is selling 5.9 billion euros ($7.7 billion)of five-year bonds in its biggest deal since July.

Investors are growing more confident banks will ride out thecrisis that started in Greece nearly three years ago after theEuropean Central Bank unveiled a bond buying plan last month. GreekPrime Minister Antonis Samaras will pitch for an additional twoyears to meet budget-deficit targets at the meeting with hisEuropean Union counterparts as Spanish Prime Minister Mariano Rajoydelays asking for a bailout.