‘Fire and fury’ comments improve Pfandbriefe value
Covered bond spreads were marginally cheaper to Bunds across the board on Friday after a flight to safety caused German government bonds to rally. The move should bode well for the many issuers that will need to refinance maturing Pfandbriefe in the next few weeks.
This week’s Bund rally followed a flight to safety bid that came after US president Donald Trump tweeted that the US was preparing to neutralise North Korea’s nascent nuclear war machine.
After he warned that North Korea would face ‘fire and fury,
’ the 10 year composite Bund yield
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