Cassa Depositi e Prestiti’s second benchmark covered bond had to be as great a success as its debut earlier this year was a disaster. The Italian issuer passed the test. Its €3 billion deal attracted orders of more than €2 billion in the first hour, and price guidance was tightened to mid-swaps plus three basis points on the afternoon of the first day of book building. The CDP bond eventually priced at an equivalent of 12.8bp over the January 2013 Bund.
So what has changed since March? First, the second deal didn’t need any hype. The excitement CDP...
