DCM view: Covered bonds and bank capital braced for dovish taper
Rates could be hiked before the end of quantitative easing, it is reasonable to expect some Spanish covered bonds to trade in line with some in France, and although additional tier one is expensive to equities there is a sound structural reason for this. Derry Hubbard, global co-head of debt capital markets at Danske Bank, speaks to GlobalCapital about these topics and more.
GlobalCapital: Do you believe rates could be normalised before the end of QE? Derry Hubbard, Danske Bank:
Negative rates are structurally a problem for the pension and insurance industry and flat yield curves can be problematic for banks. So I don’t believe the ECB will
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