Bawag bags covered demand with juicy 15 year in busy mart

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By Bill Thornhill
12 Jun 2019

Austrian lender Bawag took pride of place among four covered bonds issued on Wednesday with its ultra-long deal being the most subscribed and the first to close order books. The transaction drew more demand than a much larger and barely subscribed seven year from Royal Bank of Canada and brought in twice as many orders as other deals from SP Mortgage Bank and Aareal Bank.

Rare borrower Bawag returned to the covered bond market on Wednesday for its first deal since January 2017 with a €500m no-grow 15 year which was priced at 10bp over mid-swaps with a new issue premium of around 2bp and demand of €1.6bn.

The strong demand reflected ...

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