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Choppy markets may spur fresh covered-bond push

Volatility is usually bad for bond sales. But it can be a boost if you are selling super-safe bank debt

Choppy markets may spur fresh covered-bond push
Photo: Getty Images / FN Montage

Covered bonds – a kind of debt that is typically secured against a pool of high-quality residential mortgages and the issuing bank – bounced back from an 18-year-low in Europe in 2015 as shaky market conditions in the second half made it harder for banks to sell unsecured debt.

And as that shakiness has persisted into 2016, covered-bond bankers are preparing for issuance to jump again.

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