Covered bonds face syndication challenge in January

The outlook for covered bond primary markets is likely to be less clear cut in January 2015 than it was a year earlier, as uncertainty over the timing of a sovereign quantitative easing (QE) programme, the trajectory of US rate rises and an ambiguous political backdrop are likely to complicate price discovery. But with a few more basis points on the table, tier one issuers shouldn’t have difficulty attracting investors.