Covered bond supply soars as yields rise

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By Bill Thornhill
12 Nov 2020

An improvement in risk appetite led to a rates sell-off and a spike higher in yields this week, paving the way for an explosion of covered bond supply that went far beyond the volume expected.

“There’s likely to be a big question over the ECB’s expected stimulus and that will put off a few until they see more clarity,” said the one syndicate banker on Monday, who expected at least €5bn of covered bond supply over the entire month of November.

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