What sets Erste’s distribution strategy apart from peers, and how have you built such deep investor relationships?
Börsig: Our distribution strength comes from a combination of factors. The first is our natural footprint in Austria and Central and Eastern Europe, where we are the leading retail and corporate bank. That gives us unique access to an important and growing investor base.
We complement our strong local presence in those countries with international sales desks inStuttgart, Berlin and of course Vienna, covering the entire international covered bond investor base in great detail. This structure positions us among the global leaders in the euro covered bond market and regionally connects the traditional financial hubs in Western Europe with the fast-growing CEE investor community, which has become a key part of the euro covered bond market.
Equally important is how we integrate distribution across the franchise. We keep an open dialogue between origination, syndicate and sales so that investor feedback is fed quickly and directly back to issuers. That level of integration ensures issuers know exactly how investors are thinking, and investors feel their views are represented. It makes for a more efficient and responsive distribution platform, and that’s something our clients really value.
That approach became especially important during the volatility of late 2024, when spreads were under pressure. We spent a great deal of time in discussions with both issuers and investors, understanding fund flows and redemptions, which helped shape transactions. The fact that those deals then performed well in secondary gave issuers the reassurance needed to keep coming back to market and investors to remain engaged.
Mladen was recognised individually as Best Syndicate Banker. Maxim, what do you think makes a syndicate banker stand out, and what does this award say about Erste’s approach to talent?
Börsig: A great syndicate banker tells clients the truth, even if it differs from what they want to hear, and does it in a way that earns trust. Clients rely on their syndicate partner to give clear, sometimes difficult advice — and still want them by their side on deal day. That mix of honesty and trust is what really matters.
Mladen embodies that. He combines a very strong grasp of numbers and market flows with an ability to understand what issuers really need. Being on the front line of a transaction requires technical skill but also personal connection.
At Erste, we’ve made a deliberate effort to build a team culture that supports this. Our DCM business has grown significantly in recent years — more trades, much more market visibility and a larger team. That creates excitement, attracts talent and motivates colleagues to take on new responsibilities. Recognition for one banker reflects the collective strength of the franchise, and it shows that we’re investing in the next generation of talent.
Djurdjevic: I see the award as recognition not just for me personally but for our whole team. Success in syndicate work depends on cooperation with origination, trading and sales. At Erste that culture of cooperation is very strong, and it allows us to deliver for clients and most importantly when markets are challenging.
How do you see investor demand in the covered bond market evolving into 2025 and beyond?
Djurdjevic: We’ve already seen more tenor flexibility in 2025 than in recent years, with trades even going out to 20 years. That reflects the steepening of the swap curve, which makes longer maturities more viable. I expect that variety to continue as long as the macro and rates picture remains stable.
Volumes are likely to rise slightly next year, with redemptions more than €25bn higher. But compared with SSA or senior financial markets, covered bond supply remains very manageable. We also see the investor base broadening. Hedge funds came in when spreads widened, while asset managers, insurers and official institutions that had stepped away during the low-yield years are now returning. That deeper pool of investors is one reason spreads have tightened again in recent months, and why I remain constructive on the market.
It’s important to stay close to investors so we can see flows and trends as they develop. That allows us to advise issuers on the right timing and structures, and to make sure transactions are well received. In the end it really comes down to trust, and that’s what keeps clients working with us.
Looking ahead, how is Erste planning to build on this momentum in covered bonds and DCM more broadly?
Börsig: For us, the priority is always to keep our existing clients very well taken care of. Long-term relationships matter more than trying to add dozens of new names at once. We aim to provide consistent support from day one, and that loyalty has been rewarded with repeat mandates across the region.
That said, there are still blank spots in Europe and beyond where we see room to expand. As our team grows, we’ll be able to reach those markets and build new relationships. At the same time, issuance needs are rising across our core client base as mortgage markets recover and new issuers enter the market. That provides us with natural growth opportunities.
Djurdjevic: We put the client at the centre and focus on anticipating market trends. We work closely with our trading desk to monitor flows and relative value so that we can give issuers the best possible advice. Covered bonds are a core part of our franchise, and we’re committed to strengthening that position in the years ahead.
For us, execution is always the most important thing. In particular in volatile markets, we strive to deliver optimal outcomes and ensure issuers feel well advised — and that’s how we build trust and lasting relationships.