AIB succumbs to wider credit malaise

AIB Mortgage Bank was the first issuer to postpone a covered bond this year, as conditions in the wider credit market deteriorated. The decision follows a string of other deferred deals in the senior unsecured and SSA space. With spreads historically tight and yields at record lows, investors would rather wait until there is more visibility on a potential sovereign quantitative easing before buying covered bonds, and especially those that trade through their government.