Squeeze tightens but no room for complacency

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By Bill Thornhill
05 Aug 2020

European Central Bank covered bond buying and mounting covered bond redemptions will exacerbate a technical squeeze — but with Bunds set to underperform swaps, issuers cannot afford to be complacent.

The last time the ECB had an opportunity to buy in the primary market was in June, when Berlin Hyp issued a €500m eight year.

With the outlook for covered bond supply this year cut by €20bn-€25bn to about €110bn, with €68bn already issued, issuance of about €40bn is due ...

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