Covered Bonds

◆ UK lender takes £500m ◆ Deal land single digits back of recent supply ◆ No-grow size supported demand

From elections to equivalence, it has been an interesting year for the euro covered bond market. As the European Central Bank has fully left the market, covered funders have needed to unearth new — and returning — pockets of demand. In early August, GlobalCapital virtually convened a panel of issuers, investors and intermediaries to discuss what shaped euro covered bond issuance this year, and what is in store for 2025

Euro covered bonds are becoming an increasingly global product. Offshore issuance is on the rise as banks — and investors — look to diversify their portfolios, writes Frank Jackman

Covered bonds are not just for mortgages. Interest in secured funding is growing across Europe as issuers look to use all the assets on their balance sheets. But regulatory requirements could hinder development and push issuers to seek out alternative modes of financing, reports Frank Jackman

Though issuance may fall short of hitting record heights in 2024, the euro covered bond market looks in robust shape, with longer tenors and tighter prices available for issuers. Austin Barnes writes that the data from GlobalCapital’s Primary Market Monitor shows just how strong conditions have been

Wide breadth of choices is enabling investors to be picky

◆ Deal comes close to yields on Italian govvies ◆ Tight level puts off some investors ◆ More Italian issuance due

◆ Borrower's first deal of its new fiscal year ◆ CBA opts for size ◆ Market receptive to 'off the run' tenor

◆ Book building slows ◆ Spread tightening lessens ◆ Volume not to blame for lower demand

◆ First £1bn deal since June ◆ Demand shows investors are interested in UK names ◆ Small premium needed on 'incredibly flat' curve

◆ Deal takes €250m more than targeted ◆ Slim premium paid for duration ◆ Investors still happy to buy despite longer tenor

◆ Slovenia debut emblematic of issuers tapping Japanese market despite carry trade chaos ◆ Being all things to all investors in the covered bond market ◆ Corporate issuers keep it short and sweet