Restart “better than nothing”, has desired effect

Yesterday’s decision by the European Covered Bond Council’s to restart interdealer market-making obligations, but for smaller ticket sizes, has met with a mixed reaction, with some market participants saying that it was necessary and others calling it meaningless. However, the covered bond market this week is unquestionably more stable than before last week’s suspension, even if the primary market is still expected to remain closed until the new year.