Covered Bonds

Erste Group’s decade-long expansion of its DCM franchise has created a covered bond powerhouse with expertise stretching from Canada to eastern Europe. Dedication to issuers and investors alike secured Erste wins for Best Bank for Distribution and Syndication, two of the most coveted categories for covered bond dealers. In a testament to the strength of its team, the firm also saw a trio bankers win awards for individual excellence.

The covered bond market gathered in Porto to celebrate its standout deals, institutions and individuals

Issuance across unsecured and covered bonds is expected to resume at a faster pace next week

◆ Commercial real estate disclosures lag behind residential ◆ Mortgage energy efficiency key to examining transition risk

◆ ECBC, ECB and US inflation put a stop to supply ◆ Issuers not missing out by not issuing in sub-par market ◆ Credit is the more appealing sector

Capital markets may be about numbers but more than that, they’re about people. When you’re pitching clients remember that, and also what Aristotle said about logos, ethos and pathos — but forget the hubris

◆ Corporate bond issuers swarm on new measure of success to chagrin of their banks ◆ An utter riot at one end of the credit spectrum for bank debt... ◆ ... while investors take their sweet time at the other end

Canton of Zurich comes sharply outside last deal

◆ Debut deal spotted tighter in secondary ◆ Some investors keen to get lines in place for future issues ◆ Buyers fine with unusual structure

Rising supply and a lack of secondary market performance put investors off covered bonds

◆ Issuer meets target with debut deal ◆ Deal comes 2bp back of recent Italian supply ◆ Trade follows two day marketing period

◆ Issuer takes £750m with first deal since 2021 ◆ Trade the joint tightest three year deal of 2024 ◆ Small premium paid