Covered Bonds

Falling interest rates push spreads wider

Issuers said to have this week 'withdrawn' planned covered bond sales will look at later window

◆ Minimal premium paid ◆ Structural demand from UK bank treasuries down but Asia steps in ◆ Sterling spread vs euro more attractive for issuers

◆ Tatra brings first covered since Jan 2023 ◆ Hypo Oberösterreich offers sub-benchmark deal ◆ Covered primary issuance now 'a little bit slower'

◆ A few basis points left on table for investors ◆ Recent spread widening presents challenge ◆ Some issuers have 'pushed backed' or 'withdrawn' mandates

◆ Deal follows recent tier two success ◆ Issuers 'need to be fair' when approaching market ◆ LBBW announces Berlin Hyp rebrand

◆ Orders increased after some investors waited to see final spread ◆ Fair value 'difficult to determine' amid widening backdrop ◆ NIPs have risen

◆ Premium paid debated ◆ Uncertainty about tenor chosen ◆ More covered supply to come as issuers adapt to higher premiums

◆ Rival bankers suggest issuer dropped initial 10 year plan ◆ Agency pays new issue premium ◆ Investors eye pick-up over OATs

◆ Issuer starts wide of EU to attract demand ◆ 'Solid' backing for longest covered bond since June ◆ Has to leave 'elevated' premium

Jarring, disengaging virtual meetings may have supplanted elite airline status and globetrotting at will for investment bankers. But this is an industry where the smartest adapt, and will make the best of both

◆ The 10 year to be closely watched amid weak duration bid ◆ Eyes on issuer's loyal following ◆ Coventry preps euro five year