Caffil takes size with covered bond despite negative premium

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By Bill Thornhill
14 Sep 2020

Caffil returned to the covered bond market on Monday to issue its fourth trade this year. Despite being its biggest deal in well over two years, it was well subscribed and was priced slightly inside fair value, implying that stretched valuations still have scope to tighten. At the same time UniCredit Austria mandated leads for a 15 year deal.

Caffil mandated BNP Paribas, Crédit Agricole, Credit Suisse, HSBC and JP Morgan on Monday for a February 2028 public sector backed French covered bond rated Aaa/AA+/AAA with initial guidance of 9bp area over mid-swaps.

After 90 minutes orders stood at €2.6bn and the ...

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