TLTRO questions cloud covered supply outlook

By Jonathan Algar
25 Jun 2014

A week of no new issues in the covered bond market has confused some market participants, coming straight after the second busiest week of the year. But at quarter end and with holidays around the corner, banks’ decisions over participation in the ECB’s targeted longer-term refinancing operations (TLTRO) programme — coupled with anticipation of a liquidity coverage ratio (LCR) announcement from the EBA — may be what is muting primary issuance.

A treasury official for a core covered bond issuer GlobalCapital spoke to on Thursday said all its treasury resources were currently mobilised on strategising if, and how, to participate in TLTRO.

The issuer said that, although its covered bond programme was unlikely to be affected by ...

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