Covered Bonds
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While it might not be popular with investors, longer dated paper is what covered bond funders need
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Bearish rates outlook to turn as inflation recedes and recession looms
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◆ Longest tranche carries lowest yield ◆ Strong duration bid fuels 15 year print ◆ Investors looking to balance out holding compared to SBI benchmark
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Double digit concession and short tenor drove interest above previous highs
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◆ German bank to tap popular three year point ◆ 'Juicy' start expected ◆ No further supply expected to follow
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Yield curve inversion too steep, putting long tenors out of reach
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The high new issue premium and short tenor assuaged investors’ concerns
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Strong issuers get better than expected traction, sparking opportunistic deals
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Supras look cheap to the EU and EIB is the latest to benefit
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Labour: don’t change the covered regime, look to secured notes instead
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Vote for the best in covered bonds by Friday July 28
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Attractive arbitrage still available for firms looking to print before the market slows down