Investors spot a silver lining in record retained covered bond issuance

By Bill Thornhill
26 Oct 2020

Investors are sanguine about the fact that covered bonds pledged for repo with central banks hit a new record this year. Although issuers acknowledge the need to appear regularly with benchmarks in the public market, some have scaled back, but this is likely to prove temporary.

€575bn covered bonds have been pledged for repo with the European Central Bank accounting for 34% of the total €1.7tr of securities pledged there, according to data compiled by Barclays. 

This proportion is up from 24% in December 2019 and represents a jump of €196bn said the bank in ...

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