Robust demand for this week’s covered bond from Banco di Desio e della Brianza has boosted hopes of further supply from the eurozone periphery. But, with further European Central Bank stimulus on the way, a supply ‘onslaught’ is unlikely.
Banco di Desio’s €500m seven year Obbligazioni Bancarie Garantite (OBG) was issued on Tuesday. The deal attracted a €1.9bn order book from 120 investors and was priced 13bp inside initial guidance at 50bp over mid-swaps to give a reoffer yield of almost 0.44%.
The deal, which