Caixa Económica Montepio Geral was able to tighten pricing for a five year conditional passthrough covered bond, issued on Thursday, by an extraordinary 17bp from the initial level, causing rival bankers to question why it had been necessary to start with what was called a preposterously tight 2bp spread range.
After an investor call on Tuesday, lead managers Commerzbank, Natixis, NatWest Markets and UniCredit and the issuer’s own syndicate desk opened order books on Thursday with guidance of 55bp-57bp area over mid-swaps.
In half an hour demand soared to more than €1bn, and a little over an hour from the start
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