Not waving but drowning?

The covered bond market sprang into action this week, with high levels of over- subscription for several short-dated issues. However the market seemed initially intolerant and prone to penalise an unwanted maturity and structure, with Royal Bank of Canada’s ten year structured covered bond encountering trouble on its way to gathering an order book of Eu1.5bn on a 1.25bn deal. The secondary market’s recent distemper continued to lurk and came to the surface with light provocation.