Covered Bonds
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Wide SSA spreads and stale secondary levels are pushing out covered spreads and NIPs -
◆ Euro covered priced inside dollars for Canadians ◆ Small premium paid ◆ Infrequent funder 'in the pack' with peers
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◆ Capped deal starts with spread range fixed from outset ◆ Issuer adds €115m of orders after setting spread ◆ Finding fair value tricky
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◆ Five year deal planned ◆ Savings banks to drive demand ◆ Deal to harness interest for high spread German paper
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◆ Book falls €150m from its peak ◆ Leads pledge €107m ◆ Single A deal tricky to compare
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Stale secondary curves send average new issue premiums wider
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◆ Deal comes close to fair value ◆ Shorter tenor offers investors something different ◆ Mass wave of sterling supply not expected to follow
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◆ Strong demand allows for tight pricing ◆ New bond pulls Achmea's curve tighter ◆ 'Odd size' wraps up Dutch firm's covered funding
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◆ Deal attracted strong official institution interest ◆ Borrower faced some limits at 40bp ◆ Low single digit concession paid
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◆ At least five more deals expected this week ◆ Sub-benchmark names to take their time ◆ Further supply mooted
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◆ 'Stable' book grows after spread set ◆ Lack of recent Spanish supply helps pricing ◆ Illiquid secondaries create wide range of fair values
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How investment banks profit when clients can’t shop around, and why their clients should be grateful
