BNP Paribas courts controversy with sole-led debut covered bond

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By Bill Thornhill
30 Jul 2014

BNP Paribas faced the wrath of the covered bond market this week after successfully placing a debut trade for Banca Popolare di Sondrio (BPS). Despite the €500m five year attracting more than 50 orders, worth €1.1bn, not one rival banker or investor had a good word to say about the syndication.

BNPP tested appetite for the €500m five year on Monday with initial price thoughts of 80bp area over mid-swaps, representing a considerable spread pick-up to where similarly rated Obbligazioni Bancarie Garantite (OBG) bonds had been trading. 

“It’s a small issuer and some people had loosely looked at Credito Emiliano’s ...

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