Covered Bonds

◆ 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

◆ 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