Vorarlberg in high demand as yields rise

Yield sign from Alamy 230x150
By Bill Thornhill
24 Feb 2021

Raiffeisenlandesbank Vorarlberg launched a 15 year covered bond on Wednesday that was three times subscribed and priced flat to fair value. It suggested that investors were eager to catch higher yields before they disappear.

After mandating leads on Tuesday, RLB Vorarlberg opened order books on Wednesday for a sub-benchmark 15 year Austrian mortgage backed Pfandbrief with initial guidance of 8bp area over mid-swaps.

After 50 minutes orders exceeded €750m, and within 90 minutes a €300m deal was announced with a ...

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