Coventry takes price over size

Coventry Building Society returned to the covered bond market for the first time in three years to take advantage of better market conditions than those that prevailed mid-week, and execute a trade before Sunday’s Asset Quality Review and stress test results are out, which could potentially disrupt the broader FIG market. Though there was some sensitivity in the book, the small deal size meant it was able price 2bp inside the tight end of initial guidance, an achievement that would have been unlikely with a €1bn trade.