Covered Bonds

Trading activity and primary performance show covered bond robustness

◆ Finnish deal delivers size ◆ Trade already spotted tighter in secondary ◆ Finnish supply lagging 2024 year to date

◆ Shorter deal proves more popular ◆ Both tranches price near the same Bund spread ◆ Small pick up to Länder offered

◆ Tight deal needed no premium ◆ New investors buy the name ◆ Some short-dated covered bonds now trading through Länder

◆ Dutch bank scoops €1.5bn with three year deal ◆ Demand allows for tight pricing ◆ Next to no premium needed

◆ Book holds together despite strong spread revision ◆ No concession needed for popular print ◆ Investors find safe haven in covered bonds

◆ Deal demand shows covered bonds ability to withstand volatility ◆ No concession needed ◆ French deal lands through OATs

Covered bonds to benefit from safe haven bids as Trump tariffs dampen unsecured supply

As bank chiefs push for a full-time return to the office, it raises the question of whether this is about productivity, or is it a retreat to the old habit of equating presence with performance?

◆ Farewell, KommuneKredit ◆ Covered bonds advance on SSAs’ territory ◆ Ivory Coast makes funding breakthrough ◆ Romania’s risks

◆ Deal lands flat to Pfandbriefe ◆ No premium paid ◆ Slim spread gap to SSAs

No reason for banks to fear going tighter still