LF Hypo prices flat to Abbey as yield hunters pile in

Länsförsäkringar Hypotek priced a €500m no-grow seven year covered bond with a roughly 2bp new issue premium on Thursday. This was the second covered bond not eligible for the European Central Bank’s purchase programme (CBPP3) issued this week following a deal from Abbey. The spread pick-up relative to CBPP3 eligible deals attracted a decent book and the maturity played to asset managers and central banks alike.