CFF slots in ahead of the EU with first negative yielding 15 year

French building
By Bill Thornhill
19 Oct 2020

Compagnie de Financement Foncier (CFF) was able to raise €500m of 15 year funding flat to its curve on Monday. But, in anticipation of the EU's 10 and 20 year dual tranche mandate, announced the same morning, investors of the first negative yielding 15 year covered bond showed a degree of price sensitivity.

CFF mandated BBVA, Citi, Helaba, Natixis, Toronto Dominion and UBS on Monday, simultaneously opening order books for a €500m no grow 15 year Obligations Foncieres with initial price guidance of 12bp area over mid-swaps. 

Within one hour the order book stood at €750m and after two hours, when demand ...

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