Covered bonds back to business as usual

Covered bonds have taken results of the European Banking Authority’s (EBA) stress tests in their stride with the most vulnerable deal of all widening just three basis points on Monday. Borrowers are expected to return to the primary market this week or early next, ahead of the European Central Bank’s November meeting and US Non-Farm Payrolls. In the meantime, the ECB announced it had bought €1.7bn of covered bonds from Monday to Wednesday last week.