Covered bond market unimpressed by US rescue

With UBI Banca having decided not to proceed with its debut at the end of last week, a French issuer was said to be testing the market this (Monday) morning for a new issue in the wake of the US government’s rescue package for Fannie Mae and Freddie Mac. While stock markets greeted the news with glee, the picture was less clear cut for the covered bond market, and whether issuers will have more luck this week than last remains unclear.