CEE covered bond supply hopes alive but limited

Eastern Europe_230
By Bill Thornhill
14 Sep 2020

There is still a fair chance of benchmark covered bond supply from central and eastern Europe this year, though it will be limited. Supply scarcity should support spreads alongside a fundamental improvement as all legal frameworks will be updated to bring them into line with the European Union’s covered bond directive.

A recent report published earlier this month by LBBW suggested a €500m deal could emerge from Poland this year, alongside three €500m transactions from Slovakia, taking total euro issuance from the CEE region to €2bn.

But in all likelihood this could prove optimistic. The last euro transaction ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial