Investors flock to Slovenská’s positive yielding debut covered

By Bill Thornhill
05 Jun 2019

Slovenská sporiteľňa’s first euro benchmark covered bond attracted strong demand from investors on Wednesday reflecting the transaction’s tempting returns in a largely negative yielding market, as well as its top credit rating.

The €500m seven year Aaa rated mortgage-backed Slovakian covered bond was priced at 19bp over mid-swaps from 25bp initially with demand of €1.6bn. CommerzbankDZ BankErste Group and UniCredit led the deal. 

The issuer has one outstanding €250m covered bond that was issued in November 2018 making Wednesday's deal its ...

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