Covered Bonds

If bankers face tough rules over personal investments, shouldn’t politicians too?

◆ How the bond market will drive CCMM to provide more climate tech cash ◆ Multilateral development bank hybrid capital — and may have found its niche ◆ Covered bond market roars back to life but will it last?

◆ Deal seven times covered ◆ No premium paid to fair value or govvies ◆ French investors unsure on OAT spread, others happy to buy

SSA spreads present the only major hurdle for rampant covered bond revival

Senior issuance remains the preferred funding route for European banks despite impressive covered bond recovery

◆ BPCE attracts €5.3bn, Navarra €3.5bn ◆ Small concessions to fair value and govvies ◆ Longer dated Spanish deal lands inside higher rated French name

◆ High spread attracts credit focussed accounts ◆ Strong demand for covered return ◆ Deal spotted 5bp tighter in secondary

◆ No pick-up offered to French govvies ◆ Deal lands through fair value ◆ Investors still eager to pick up paper

◆ Deal finds demand despite arrest of South Korea's president ◆ High single digit concession left for investors ◆ Leads added spread to calm concerns

EGBs and USTs are having trouble too; what makes the UK any different?

◆ Small French name attracts €3bn book ◆ Almost no premium needed ◆ Small pick-up to OATs no problem

Early signs of a milder start to public bond issuance in 2025 than last year, but with one important caveat