Covered bond squeeze feared as ECB ramps up buying amid slower supply
After a brisk start to the year, the pace of covered bond supply had already begun to slow by Thursday amid growing concern that the European Central Bank would be compelled to step up purchases, igniting fears of a technical squeeze. Bill Thornhill reports.
After seeing as many as six euro deals emerge on Tuesday, three were priced on Wednesday and only one was seen on Thursday. The evident slowdown materialised amid a growing sense of gloom over the near term supply outlook.Several lead managers said supply would remain anaemic as issuers ...
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