NIBC begins covered bond revolution with conditional pass-through innovation
NIBC on Tuesday brought a new structure to the covered bond market that investors wolfed down, prompting hopes of a much-needed supply spree. But the structure has divided the market, with bankers and RMBS and covered bond investors at odds over its potential, reports Bill Thornhill.
The rampant reception that met NIBC’s conditional pass-through covered bond (CPTCB) from core investors gave encouragement to bankers that the structure will prove a key development in covered bond history.
The €500m five year CPTCB was priced at the tight end of guidance at 50bp over mid-swaps on
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