Covered Bonds
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The Dutch seven year covered bond was priced 4bp wider than a 10 year issued last week -
Superior deals from BPCE and UniCredit Bank Austria showed ‘the power of green’
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A generous concession ensured execution certainty for the troubled lender
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Investors show less inclination to buy longer tenors from smaller names
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Issuer benefited from its credit strength and rarity in primary markets
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Cantonal lenders have a ‘perfect’ spread difference to govvies and high rated Swiss comparables
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But demand was considerably below its debut offering
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The Finnish deal offered a substantial premium over benchmark sized deals
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New plan should be designed in a way to avoid splintering eurozone banks
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EU's new syndication takes centre stage in rates market as bonds are bid in the grey and will offer a good pick-up
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The deal was driven by demand from banks with very little real money interest
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Demand for the Dutch green debut was four times greater than for BSH’s Pfandbrief
