Covered bonds set for safety bets major investor

Safety 230x150
By Bill Thornhill
28 Oct 2020

The covered bond supply outlook is dismal and could worsen but that means spreads are well protected, even if competing supply in the rates market from the EU ramps up, a major investor told GlobalCapital on Wednesday.

One of the major themes in covered bonds this year has been the increase in those pledged for repo with the European Central Bank which, according to Barclays, was close to €200bn compared to levels seen in December 2019. 

Despite a 30% reduction in euro benchmark supply this ...

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