Baca and Sparebank 1 show covered bond conditions have never been better

Safran rocket 2
By Bill Thornhill
15 Sep 2020

UniCredit Bank Austria (Baca) was set to issue its fastest growing, most subscribed covered bond ever on Tuesday and Sparebank 1 Boligkreditt was posed to bring ts most subscribed deal with its most granular order book ever. Both covered bonds were priced flat or slightly inside fair value and illustrated that market conditions are at the best they've been this year.

Baca’s 15 year deal was subscribed in only five minutes with the order book doubling in size to more than €1bn 30 minutes after opening. 

An hour into the process, when orders exceeded €2bn, the spread was refined from an initial 14bp over mid-swap area to 10bp, plus or ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial