Ring-fencing will give an extra boost to the safety credentials of UK covered bonds since the strong credit profiles of the new ring-fenced entities mean issuers are even less likely to stop coupon payments.
DNB Boligkreditt and Canadian Imperial Bank of Commerce (CIBC) drew riotous responses for their five-year covered bonds last week, in contrast to ECB-eligible names where demand continues to be much more measured.
Banco BPM priced its first covered bond issue since the merger of Banco Popolare and Banca Popolare di Milano came into force in January 2017, arguably facing an easier task than other recent Italian deals.
US homebuilder Hovnanian said Tuesday it had won consent from some bondholders to embark on a controversial debt swap that has sparked a lawsuit from other investors alleging fraud.
Two infrequent borrowers are looking to come to market in what is expected to be another busy week for corporates after €12.55bn of supply last week.
Alpha Bank was rumoured to be among the names lining up a transaction for this week, the only one of the big four Greek banks yet to return to the debt capital markets.