Austria

Kommunalkredit Austria showed the gulf between public sector covered bonds from established, legislative jurisdictions and the mainly structured mortgage issuance this week by coming out with price guidance of mid-swaps flat for a four year deal via Citi, Dresdner Kleinwort and UBS today.

Erste Bank launched its first euro denominated public sector backed covered bond in the international market yesterday (Thursday), a two year floating rate note that was increased from Eu100m to Eu150m and then Eu160m on the back of strong demand.