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

The Markit iTraxx Financial Index of credit-default swaps on the senior debt of 25 European banks and insurers fell for a fifth day and now exceeds a broader measure of 125 investment- grade companies by 49 basis points, compared with 120 basis points in July. The European Financial Stability Facility, the region's temporary 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 the crisis that started in Greece nearly three years ago after the European Central Bank unveiled a bond buying plan last month. Greek Prime Minister Antonis Samaras will pitch for an additional two years to meet budget-deficit targets at the meeting with his European Union counterparts as Spanish Prime Minister Mariano Rajoy delays asking for a bailout.