Currencies

Market becomes harbour in geopolitical storm with borrowers tipped to set sail

But low spreads on bonds posing stiff competition for loan market

Issuer makes saving versus home currency and discovers ‘extraordinary’ real money demand

Exceptional moves in rates could impact relative value across the FIG capital structure

◆ Deal the first publicly placed UK covered bond secured on buy-to-let mortgages ◆ Saving spotted versus RMBS ◆ Low double digit pick-up needed over prime UK paper

◆ German state braves extreme spread volatility ◆ Deal was priced after government signalled higher Bund and Länder supply ◆ ‘Flip side for investors’ is much higher yield

EGBs sell off as Germany tries to fund both infrastructure and defence through debt brake reform

◆ Germany syndicates new Bund after spending shock ◆ Was the spread tight? ◆ ‘A great sign’ that market still functions

◆ Three IG corporate issuers snag more than €12bn of demand ◆ Whipsawing rates do little to dent appetite ◆ Yield hogs: Harley-Davidson tightens spread by 45bp

◆ First sterling benchmark from UK water this year ◆ Lands inside fair value ◆ Comes amid wild moves in rates market

◆ Tuesday brought 'first proper correction' for European FIG bonds this year ◆ But NN sails ahead with tight pricing ◆ Pays some new issue premium due to worse sentiment and larger €1bn size

◆ Prices tight to US Treasuries ◆ Swap spreads move during bookbuilding ◆ It would 'not have been good' to be in euros