TLTRO questions cloud supply outlook

A week of no new issues in the covered bond market has confused some market participants, coming straight after the second busiest week of the year. But, at quarter end and with holidays around the corner, banks’ decisions over participation in the ECB’s targeted longer-term refinancing operations (TLTRO) programme — coupled with anticipation of a liquidity coverage ratio (LCR) announcement from the EBA— may be what is muting primary issuance.