Covered spreads to tighten on negative supply
Gross euro denominated benchmark issuance should grow slightly in 2013, but with redemptions set to increase sharply, net supply will be negative, said analysts as they looked ahead to the New Year. That could mean that spreads will continue to tighten.
Since much of the spread performance this year has already taken place in Europes core markets, the higher yielding jurisdictions of Spain, Italy, Ireland and Portugal are likely to have the best potential next year, covered bond analysts said.
The range of euro supply forecasts from Barclays, BNP
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