US rating cut has silver lining in dollar covered bond market

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US rating cut has silver lining in dollar covered bond market

With US Treasuries and government-sponsored enterprise (GSE) paper closed to buyers with a dedicated triple-A policy, European covered bonds may enjoy increased interest from US investors in search of assets. Syndicate officials said that in spite of several mandates for investor meetings ahead of euro issuance (see story opposite) it could be a dollar deal that reopens the covered bond market after the August interval.

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