CFF and Caffil smash Euribor barrier with staggering demand

By Bill Thornhill
11 Sep 2014

The covered bond market passed another milestone this week with Caisse Française de Financement Local (Caffil) and Compagnie de Financement Foncier (CFF) attracting book sizes that were reminiscent of the high yielding peripheral transactions seen a year ago, but at spreads well through mid-swaps.

Bankers said the swell of interest reflected the view that the technical mismatch between supply and demand was set to accelerate. “I don’t expect to see a massive wall of supply over the rest of this year, which means you can expect spreads to become even more compressed,” ...

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