Banesto in demand amid secondary profit taking

The European primary covered bond market continues to go from strength to strength as an emboldened senior unsecured sector breeds confidence in overall bank funding. This was most visible in the book build for Banesto’s Cédulas on Tuesday. Demand for Spanish paper shows no sign of diminishing, despite more than €3bn of Cédulas issuance in the last week. There is more conspicuous profit taking in the secondary market, but after the last fortnight’s one-way street, bankers sees this as a positive development.