¡El Magnifico! Santander, LTRO revive Spanish covered bonds
The strength of the Long Term Refinancing Operation rally was on vivid display this week as Santander shrugged off a heap of negatives to rack up one of the largest ever order books for a covered bond. Despite its flop last time out, a poorly received recent asset liability management (ALM) exercise and the cédulas sector’s eight month washout, the €2bn benchmark restarted Spanish supply in stellar fashion on Wednesday — and paved the way for more risk-on deals.
"Theres value to Santander doing something as spectacularly successful as this trade was," said one banker, comparing it to Intesa Sanpaolos 1.5bn senior trade on Tuesday (see page 10).
Led by Barclays Capital, Citi, Natixis and Santander, the three year deal attracted orders of 8.25bn from over 275 accounts.
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