MPS funding bodes well for capital raise

Covered bonds that can be bought in size and with a triple digit spread over mid swaps are a rare commodity, so it was perhaps unsurprising that Banca Monte dei Paschi di Siena (MPS) attracted one of the highest oversubscriptions of any covered bond of this size this year. But twinned with its recent senior issuance, the deal shows that the bank can easily access to capital markets, which can only help underpin confidence ahead of its capital raise.