Seven, 10 and 15 years. Whatever next?

That all of this week’s jumbo covered bonds were in maturities of seven years or longer suggests that the market has little reason to worry, in the short term at least, if European Central Bank governing council member Ewald Nowotny’s five year maturity limit for the Eu60bn purchase programme turns out to be true. Market participants have even begun discussing the possibility of a longer dated covered bond than this week’s 15 year for Dexia Municipal Agency.