CBPP3 pace to slacken as sovereign QE overshadows

The pace of covered bond purchases is likely to slacken next year due to natural market forces, but also because the European Central Bank’s focus will turn to sovereign bond purchases, said Commerzbank analysts in their 2015 outlook published on Wednesday. Despite estimating a €15bn annual decline in supply to €100bn, new regulations which require banks to focus on capital rather than funding will not be overly negative the analysts said in a report published on Wednesday.