Adaptability key to covered bond oversubscription

The covered bond market got off to a strong start this week as two issuers showed their willingness to adapt to demand. Eurohypo found success after switching from its originally announced five year public sector Pfandbrief to a Eu1bn 10 year mortgage backed deal, while Finland’s OP Mortgage Bank avoided the crowded three year part of the curve and found enthusiasm for a Eu1bn two year new issue. Société Générale could be launching its debut public sector obligations foncières in the coming days, having mandated HSBC, SocGen and UniCredit as leads for the benchmark five year issue.