Tight covered bond concessions are unsustainable

Covered bond new issue concessions and spreads have tightened considerably since the start of the year, but it is unsustainable, according to one major investor.

  • By Bill Thornhill
  • 06 Feb 2019

Investors buying to fill bank liquidity portfolios have been piling into the asset class, despite the recent tightening across the sector, attracted by the higher returns compared to Bunds.

This has replaced the void left by the European Central Bank’s pullback from covered bond purchasing.

Investors’ interest has been buoyed by ...

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Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 5,126.88 21 7.33%
2 Barclays 4,041.33 20 5.78%
3 UniCredit 3,842.10 30 5.49%
4 LBBW 3,782.72 20 5.41%
5 Natixis 3,503.93 14 5.01%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 14,133.80 57 7.69%
2 JPMorgan 11,975.54 50 6.51%
3 Morgan Stanley 11,637.78 52 6.33%
4 Goldman Sachs 10,376.12 72 5.64%
5 BNP Paribas 10,127.86 28 5.51%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 11,039.30 41 11.69%
2 Citi 9,986.01 43 10.58%
3 Morgan Stanley 9,906.77 40 10.49%
4 Goldman Sachs 9,518.02 65 10.08%
5 Bank of America Merrill Lynch 8,526.90 27 9.03%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Natixis 3,106.36 10 7.25%
2 HSBC 3,089.99 10 7.21%
3 Barclays 2,870.45 11 6.70%
4 LBBW 2,867.95 11 6.69%
5 Credit Agricole CIB 2,698.01 10 6.30%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 UBS 2,550.05 5 27.51%
2 HSBC 984.09 6 10.62%
3 Santander 660.14 4 7.12%
4 Deutsche Bank 511.09 4 5.51%
5 Credit Agricole CIB 459.09 3 4.95%