Covered Bonds

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

Deutsche Pfandbriefbank (PBB) prioritised size over spread for the first Reg S dollar covered bond to be priced against Sofr mid-swaps.

Axa Bank Europe attracted good demand for its first covered bond since the subsidiary was fully acquired by Belgium’s Crelan Group

Tuesday’s €5bn tap of the European Union’s bonds due 2051 performed well, with short covering interest expected to drag the curve tighter, said rates traders