Berlin Hyp, the German mortgage bank, this week set a new record with the most negative yielding covered bond, a transaction that should bolster the confidence of other borrowers who can no longer put off issuing such deals.
Over 95% of the outstanding euro covered bond market now trades at negative yields, but so far this year, banks have avoided issuing such deals by issuing longer and longer maturities. But with negative swap rates now extending well beyond the 10 year area, this option is no
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