Popolare illustrates merits of covered bonds

Obtaining funding for a single-A rated entity from a peripheral jurisdiction was never going to be a stroll in the park — in senior unsecured it has, at times this year, been impossible. Italy’s Banco Popolare raised Eu1.25bn from a 4.75 March 2016 issue via Banca Aletti, BNP Paribas, Goldman Sachs, RBS and UBS on Tuesday, showing how strategically important the covered bond market is, not just for the issuer, but for the health of the entire banking system.