Investors frantically pile into covered bonds
Covered bonds issued on Tuesday by UniCredit Bank AG and Hypo Vorarlberg Bank (HVB) found good demand, mainly from bank investors. Despite their meagre and diminishing returns, the bonds offered a better spread compared to other regulated assets.
HVB returned to the covered bond market for the third time this year to sell a €1bn 15 year at 8bp over mid-swaps. The bonds, initially marketed at 10bp area, offered a 3bp new issue premium and attracted final demand of €1.6bn.DZ Bank, Lloyds, NordLB, ...
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