Following a slow beginning of the month, Standard & Poor's analysts, in a report released on May 25, stated that covered bond issuance has increased over the past few days.
Landesbank Baden-Wurttemberg and Deutsche Pfandbriefbank had placed €500 million six-year and seven-year covered bonds, respectively.
S&P reported that these priced at S+7 basis points and S+60 basis points, respectively. Both offerings were oversubscribed.
Meanwhile, Denmark’s Nykredit sold €500 million of five-year covered bonds in junior format at S+200 basis points.
In the U.S., there has also been positive developments in the covered bond sector as well.
A Securities and Exchange Commission no-action letter issued responding to Royal Bank of Canada's request has opened the door for the inclusion of U.S. dollar-denominated covered bonds in indices buyers utilize as a way to track returns, according to a Fitch Ratings note.
