Tight supply and redemptions add to refinancing pressure

Euro benchmark covered bond issuance since August fell by a third compared with the same period last year, but a look at the redemption calendar for this quarter and the first quarter of 2012 shows that funding pressures will not wait for Europe to fix itself. The new ECB purchase programme (see separate story) may help some borrowers plug funding holes, but with only €40bn at its disposal, not all issuers will be able to rely on it for refinancing.