PBB prices tightest Sonia covered bond

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By Bill Thornhill
20 Apr 2021

Deutsche Pfandbriefbank (PBB) issued the tightest ever Sonia-linked covered bond on Tuesday at close to fair value, with little spread sensitivity and a high quality order book. The strong result sent a positive signal to other issuers with natural sterling funding needs.

PBB mandated Deutsche Bank, HSBC, NatWest Markets and Nomura on Monday for the mortgage Pfandbrief and opened order book on Tuesday with guidance of 30bp area over Sonia.

After two and a half hours demand stood at €500m and by 12:30pm UK time a £500m deal was announced with ...

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