Covered Bonds

Modestly sized deals in intermediate maturities with a fair concession worked well

End of the special discount rate and net stable funding ratio efficiency to drive early repayments

Second tier SSA issuers and covered bonds at the short end of the curve are a ‘screaming buy’ compared govvies, say traders

Dutch bank became the first issuer to print a 10 year covered bond in five weeks

The order book was price sensitive, but the subscription ratio was still strong

The cost of funding was in line with what LBBW could have expected in euros

The five year tenor ensured swift and certain execution for UniCredit AG, enabling the spread to be tightened more than usual

Liquidity in the interdealer market for SSA bonds dried up this week, underscoring a palpable sense of risk aversion illustrated by a widening in the Bund-swap spread to levels not seen for a decade.

BPCE issued the largest French covered bond since April 2020, attracting immense demand in the last half hour from newly returned fast money accounts and intermediaries

Amendments to LCR will benefit covered bond issuers and investors

Strong support for national champions as market volatility persists

Demand for ING’s five and 15 year covered bonds was tilted towards the short end catalysing curves to steepen across the board