Covered Bonds
-
The largest deal in six months offered cheaper funding than euros -
Credit Ag and UniCredit AG built big order books
-
Size and spread close to what was possible in euros
-
Borrowers are maximising deal sizes, implying that they believe conditions will worsen
-
Heavy supply to 'weigh on the market', especially in the long end
-
Total demand exceeded €9bn for Tuesday’s Spanish and German deals
-
Spreads will widen next year, say bankers
-
Southern European banks to lean on covered bonds for TLTRO refinancing
-
EU-Bonds to have same status as government debt, says central bank
-
Banks will lean on covered bonds but prefer long maturities
-
Wider spreads, difficult markets but plenty of opportunity
-
Sizeable euro funding to supplement domestic deals across the Nordic region as Swedish domestic advantage ebbs
