Issuers face balancing act

摘要

Covered bond issuers must keep investors onside even as ever-sinking spreads threaten to crowd more out of the market because the central bank bid - ubiquitous in recent new deals - will not be around forever. Panellists speaking at IFR's annual covered bond conference in Frankfurt last Thursday warned that falling bid-to-cover ratios for bonds eligible for CBPP3 indicate that the more aggressive the central bank's bid, the less demand there is from other investor groups.