Hunt for liquidity exposes covered bond value

Liquidity_jigsaw_Adobe_230x150
By Bill Thornhill
23 Mar 2020

The hunt for liquidity has driven covered bond spreads wider across the board with little fundamental differentiation between assets, investors told GlobalCapital on Monday. This move has thrown up opportunities to find value before liquidity is restored when the European Central Bank steps up its asset purchases.

Euro benchmark covered bonds issued last week by a range of Canadian banks suggest spreads are anything between 30bp-50bp wider than they were in mid-February, as opposed to the rather meagre 7bp widening suggested by Markit’s iBoxx euro covered bond index. 

As a consequence, the few ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.