Dutch covered bond issuers to reconsider CPT viability

By Bill Thornhill
07 Jul 2020

Lower overcollateralisation (OC), tighter spreads and access to the ultra-long end of the curve are likely to cause some Dutch covered bond banks to reconsider whether it is still viable to issue conditional pass through (CPT) deals or follow NN Bank, which recently switched from to soft bullet issuance.

Achmea Bank recently attracted an order book of €2.8bn from more than 100 investors for its five year conditional pass through covered bond that was priced at 24bp over mid-swaps in early June.

Whilst that may have seemed like a great outcome, the pricing did not compare ...

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