Does sub-jumbo equal sub-standard?

With almost half of June’s new covered bond issues falling short of the Eu1bn jumbo requirement, the implications of Eu500m-plus issues are being grappled with by all sides of the market. Most market participants have adopted a constructive attitude toward the development, but with some investors wary of issuers’ motives, there appears to be near-unanimity on only one issue: the term “jumbolino” is not fit for purpose.