Covered Bonds

Infrequent issuer's less liquid curve makes judging fair value tricky

Non-eurozone deals are attracting big books and tight pricing

Norwegian lender seals five year covered 2bp-4bp through fair value

Degree of price discovery is needed as bankers question relevancy of illiquid secondary levels

Popular non-eurozone deals are landing far through fair value

Proceeds will finance lending to French hospitals

Although investors want sterling risk, issuers are not queueing up to issue

◆ Nationwide to grow asset size by a quarter ◆ Affords to pay 38% premium thanks to top ranking CET1 ratio in Europe ◆ Strong rally of Virgin Money bonds suggest acquisition likely to proceed

Although demand could support a 15 year deal, issuers are reluctant to lock in higher spreads

The long zone is wide open, but access is limited to names with strong followings

Pent-up demand for first sterling covered deal in three months fuelled the tight outcome

£500m no-grow trade the first in sterling for three months