Covered bond spreads remain stable despite the heavy issuance seen so far this year, according to a report from Societe Generale.

Since the beginning of the year the market has seen around €22 billion of benchmark deals which puts the market on track to reach the record volume €44bn set in January 2011.

Despite the glut of issues set to hit the market, analysts say that a lack of product in the capital markets mean investors and issuers have no choice but to concentrate on covered bonds.

Banks may also be looking to stay in the safe side just in case 2012 turns out to be as volatile as 2011, according to the analysts. "The relative resilience of the Greek covered bond gives cause for reflections," said analysts in the report.

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