Caffil issues tightest covered bond in over a year

By Bill Thornhill
11 Jan 2021

Caisse Francaise De Financement Local (Caffil) issued only the second covered bond of the year in a large size on Monday, pricing the deal flat to its curve. Despite the prospect of mounting covered bond redemptions, the supply outlook remains abysmal, suggesting spreads will tighten more.

Caffil mandated leads Barclays, Citi, Commerzbank, Société Générale and UniCredit for a benchmark 10 year deal on Monday, simultaneously opening order books with guidance of 7bp over mid-swaps.

After one hour, orders exceeded €1.6bn and after two hours, when more than €2.6bn of interest was in the ...

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