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◆ Swedish bank funds across the capital stack ◆ Latest euro covered bond launched to capture strong demand ◆ One of the tightest deals in three years
◆ Both issuers are linked to RBI Group ◆ Austrian bank prices with negative concession... ◆.... while RBI's Slovakian subsidiary pays premium for its largest deal in many years
◆ Second longer dated French deal in a row ◆ Issuer parks at a double digit spread inside the government's curve ◆ Concession paid
◆ Large demand for all tranches, including rare FRN ◆ Despite flat swap curve long end 'flies' ◆ Higher yields a boon for investors
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Converging funding costs to euros will revive dollars further
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Curve inversion makes fives problematic for issuers outside Europe
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The deal was priced flat to Barclays’ recent new issue but was double the size
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More popular short dated trades helped propel annual covered bond issuance in single currency to new high
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Investors left the order book after size aspirations were set
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The deal ‘drew a line’ under a period of hefty secondary market selling