Supply volumes sag despite 'good opportunities' in covered bonds

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By David Freitas
24 Jul 2020

Tight trading levels will make covered bonds an attractive asset class for statement trades and issuers outside of the euro area, but market participants say that this is unlikely to be enough to lift overall supply volumes out of the doldrums in the second half of 2020.

Covered bond valuations have been rising recently, as market conditions have improved dramatically for issuers.

The Mark iBoxx euro covered bond index showed this week, for example, that spreads are now only about 6bp wider compared with where they sat in January.

But despite pricing levels having rebounded following a ...

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