Covered bond spreads to widen as investors take profits

Profit 230x150
By Bill Thornhill
29 May 2019

Covered bond spreads have tightened a long way since the year began and, with risk aversion creeping up, it is likely that new issue premiums will rise too, particularly since some investors will be inclined to book profits.

New issue premiums, which had been negligible at the start of May, have begun to widen. Deals issued this week from Swedish Covered Bond Corporation (SCBC) and UniCredit Bank Austria offered a concession of around 2bp. 

And with the rates market likely to remain turbulent over the foreseeable future, ...

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