Senior bonds tussle with covereds as spreads converge

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By Tyler Davies
31 Aug 2017

Senior preferred valuations have been moving ever closer to those of covered bonds, making it difficult for issuers to decide which funding instrument to favour in recent weeks.

“I don’t get the feeling that many issuers are considering issuing covered bonds in the next few sessions,” said one FIG syndicate banker. “It is a difficult market at the moment. In my view, you should do senior if you can. It is just much better value.”

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