Stadshypotek extends dollar covered curve to seven years

27 Sep 2012

Sweden’s Stadshypotek pushed the dollar covered bond curve out to seven years this week, pricing the longest covered bond benchmark in the currency since 2007. Issuers have been eager to launch longer dated dollar deals for years, and syndicate bankers are confident of follow-on trades in the same tenor.

Yankee covered bond supply has been five years or shorter since the financial crisis began, with US accounts typically preferring the more liquid mid-part of the curve. However, in a low interest rate environment the seven year maturity has become increasingly popular in the covered market. Over 60% ...

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