Covered Bonds

Cover ratios, price traction and premiums are all moving in issuers' favour

◆ Senior euro funding pushed back in favour of covered bonds ◆ Both issuers and investors show preference for high grade products ◆ BPCE picks the US for a quadruple Yankee as sentiment recovers

Local market deal will help the bank's domestic entity to fund cheaply and independently

After an abysmal September, covered bond volumes began to improve on Tuesday, as Caffil and Nationale-Nederlanden Bank returned to the market to raise €750m apiece, and Danish Ship Finance announced a new three year deal and a tender offer.

Investors may prefer to buy covered bonds amid escalating geopolitical tensions but rates volatility is against them

◆ IG investors comfort eat sweet spreads ◆ What can FIG issuers do now? ◆ US HEI securitizations: mainstream or flash in pan?

Senior issuance to come to the fore as higher rates deter covered bonds and subordinated funding

The yield curve is less inverted but it brings no relief to duration fiends

The deal attracted half the demand of compatriot issuer's, but was priced far tighter

The wide starting spread suggested a great deal of price discovery

◆ Senior deals beckon if volatility subsides ◆ Hamburger Sparkasse pricing likely to be unaffected by higher rates ◆ Covered bonds more affected by rate swings

The Australian bank's debut deal was perfectly timed and would not have achieved the same result this week