Covered bonds find unlikely hero as FIG creeps back to normality

Credito Emiliano produced a stellar result in covered bonds this week, trumping the combined efforts last week of better-rated borrowers to show the benefits of rigorous investor relations work. The ability to appeal to investors proved important in capital new issues too as was clear from the chunky premium initially offered by Aviva’s tier two deal on Tuesday, which led a brief revival in FIG supply ahead of a central bank-dominated end to the week.