Covered issuance reaches fever pitch

With Banco Espiríto Santo having priced its debut covered bond, four deals live this morning (Wednesday), and more due before the end of the week, covered bond issuance is reaching new highs. However, the market has held up under this onslaught of about Eu8bn of paper, as issuers have been prepared to pay the record spreads required. Read EuroWeek this week to find out how long the pace can be maintained.