Redemptions the salvation for LBBW’s jumbo

Landesbank Baden-Württemberg has priced only the second sub-Libor deal to hit the primary market this year. The Eu1.5bn five and a half year public sector covered bond was re-offered at 1bp below mid-swaps yesterday (Wednesday) afternoon, buoyed by high redemptions of Pfandbriefe that contributed towards an order book of more than Eu5bn.