Danske displays core covered convergence
Danske Bank’s first covered bond of the year offered an attractive spread relative to its Nordic peers, making it a straightforward sell for its lead managers. But even so, the final pricing level was just one third of Danske’s differential against top tier Swedish covered bonds issued a year ago.
On late Monday afternoon the bank mandated Commerzbank, Crédit Agricole, Natixis, UniCredit, alongside its own syndicate team for the seven year €1bn deal.
The issuer decided to execute ahead of Thursday’s European Central Bank policy meeting when market uncertainty could have precluded issuance, due to higher execution risk....