CCDJ looking good amid hopes of core covered supply

By Bill Thornhill
30 Sep 2020

After mandating leads on Monday, Fédération des Caisses Desjardins du Québec (CCDJ) opened order books on Wednesday for its first dollar deal in over a year and the first dollar covered bond since May. In the meantime, investors were waiting for Sumitomo Mitsui Trust Bank's first deal amid renewed hopes that a core European issuer will mandate before the end of the week. With redemptions mounting, there are hopes that other issuers will pounce on the market early in the fourth quarter.

After a series of investor calls held on Tuesday, CCDJ opened order books on Wednesday for a three year dollar covered bond rated Aaa/—/AAA with initial price thoughts of high 20bp area over mid-swaps and after two hours had gathered demand of €850m via joint leads Barclays, BMO ...

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