Covered bond spreads are likely to be wider in January when supply typically peaks, making a good argument for pre-funding this November and giving optimism to some bankers. However, while there are a few projects slated for next week, other bankers do not believe an avalanche of deals is likely.
At around €10bn, October’s covered bond issuance was up 60% on October 2017 according to analysts at ABN Amro. But whether this primary momentum carries through to November remains to be seen. So far this year €124bn has been issued which is up 28% from 2017.