Tight covered bond concessions are unsustainable

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Tight covered bond concessions are unsustainable

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Mario Draghi, president of the European Central Bank (ECB) attends the ECB press conference in Frankfurt/Main, Germany, 04 September 2014. The ECB reduced the base rate to a historic low of 0,05 percent. Photo: Frank Rumpenhorst/dpa | Frank Rumpenhorst/DPA/PA Images

Covered bond new issue concessions and spreads have tightened considerably since the start of the year, but it is unsustainable, according to one major investor.

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