Euro

Deeply subordinated capital paper attracts diverse demand

Higher yields and wider spreads have revitalised demand, as seen in Muenchener Hypothekenbank's recent deal, which attracted €2.75bn of demand from returning official institutions, as well as bank treasury investors from as far afield as Australia

Bigger concessions become an important way to mitigate volatility in swap spreads

Previously mooted covered bond plans not completely off the table

The spread was tightened by more than on any other covered bond in the past four weeks

New issue concession diminished throughout the day amid sharp rates volatility

A steep rise in four year yields to more than 1% sparked investor interest

Spanish deal hits yield target for other insurers

Despite less demand from the ECB, covered bond flows are in rude health

Deeply subordinated capital paper attracts diverse demand

Deal priced inside guidance in contrast to an earlier Slovakian deal from VUB

Portugal and Council of Europe first to follow EU pathfinder trade