Covered bonds brace for benchmark shrinkage
Despite regulatory support, the arrival of new names, almost €100bn of redemptions and banks’ increasing dependence as the senior debt market dwindles, supply of euro benchmark covered bonds is likely to fall next year, according to analysts.
Forecasts for 2012 range very widely, from almost 200bn to 120bn, though many firms congregate between 180bn and 150bn.
The market outlook is highly reliant upon a solution to the eurozone crisis. Bank of America Merrill Lynchs base prediction is for it to remain selectively open to Australian,
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