Commerzbank

◆ Issuer attracted order book of €1bn ◆ Bid-to-cover ratio was consistent with recent precedents◆ Fair value not easy to establish

◆ Shorter tranche tightens by 3bp ◆ Order book was skewed towards 7 year leg ◆ Issuer placed similar dual trancher in January

◆ Post-ceasefire rally brings predictability to market direction ◆ Quick execution brings the deal within vicinity of fair value ◆ Price discovery needed within German senior preferred universe

Swiss franc covered bond from Kiwibank the only deal on Thursday after a patchy week

◆ Issuer tightens spread by 4bp ◆ Stronger opening on Wednesday paved way for covered ◆ Deal offered some new issue premium

The launch of a €35bn exchange offer for Germany’s Commerzbank marks a decisive attempt to break a stalemate that has frustrated Andrea Orcel in his quest to turn UniCredit into a pan-European banking champion

Many factors could affect the relative value of covered bonds and SSAs this year

The lack of covered bonds priced this week has focused minds on the the specific requirements of investors and issuers

Research suggests up to €23bn of new covered bonds could still be issued in March

Market participants recall NIP increases triggered by Trump's 'liberation day' tariffs

◆ Small NIP enough to attract strong bid for long tranche ◆ Investors get selective amid volatility ◆ Commerz fills out its curve with two points

Commerzbank reshuffles leadership in Germany amid loan build-up