Investors jump on rare Belgian covered bond

KBC
By Bill Thornhill
27 May 2020

The stream of French covered bond deals was interrupted on Wednesday when KBC Bank returned to the market for the first time in more than two years to issue a long five year, priced slightly inside its own curve. The oversubscribed order book, reflected investor anxiety about the supply drought.

Eight of the last 10 euro benchmark covered bonds were issued by French banks, so when investors were offered the chance to diversify to another jurisdiction on Wednesday, they wasted no time placing orders — particularly given KBC’s long absence from the market and because many investors will ...

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