Hungary euro covered bond issuance set for revival
After a decade of slumber, the market for euro-denominated Hungarian covered bonds could be poised to reopen. Hungary covered bonds may have a low country ceiling credit rating but the market is well protected and could offer positive yields.
“For the first time in years they’ve shown interest in printing,” a DCM banker told GlobalCapital on Tuesday about Hungarian banks issuing covered bonds.
He described spread levels that issuers sought as “ambitious but not idiotic.” However he was concerned that Hungary’s Baa1 country ceiling rating was low.Furthermore ...