Dapo prices through its covered bond curve
In an illustration of the spread tightening under way in covered bonds, Deutsche Apotheker-und Aerztebank (Dapo) priced a 10 year inside its curve this week. At the same time Raiffeisenlandesbank Vorarlberg followed DZ Bank into the 15 year tenor to give a tempting reoffer yield of almost 50bp.
The euro covered bond market was in good shape on Wednesday as two issuers followed the three that brought well-received deals on Tuesday. Both of Wednesday’s transactions were well subscribed, with the pricing levels suggesting that the direction of travel is for spreads to move tighter.
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