March covered bond supply to remain thin
Bankers do not expect to a resurgence of primary covered bond supply in March with banks expected to focus on regulatory issuance. ECB covered bond purchase data was due on Monday afternoon, with market participants eager to see if the central bank increased its buying to contain the recent rise in yields at the long end of the curve.
With respect to the March outlook for supply, several bankers were not expecting much.
“We’ve got a decent pipeline but none of it is in covereds,” said one banker.He thought that prospects would depend on how consumer spending reacts once countries emerge from lockdown, noting that there ...