Drop in covered bond supply questioned

By Bill Thornhill
21 Jan 2021

The covered bond market is set to experience one of the steepest declines in issuance on record this January. Yet, despite a poor start, bankers still expect a resurgence in the primary market, although extended lockdown restrictions are creating uncertainty.

New issuance picked up on Tuesday, when four covered bonds emerged, but there have been no mandates since and scope for further supply is dim as many banks are now in blackouts.

So far this year, almost €11bn of covered bonds have been issued — less than ...

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