So that’s why the new issue premiums were so high

Covered bond spreads, which held up well in the face of yesterday’s equity market falls, widened several basis points today. At the tighter end of the spectrum French obligations foncières were said to be some 2bp wider, and Spanish and UK issues about 5bp softer. Weaker German names with recent headline risk attached, such as WestLB and Hypo Real Estate, were said to have suffered, too.