The hit to liquidity suffered by the covered bond market in September threw the market into disarray. The only prevailing opinion seems to be that no one knows what’s going on, or what the eventual cost to the market will be.
Different sectors of the covered bond market are reacting in different ways but as issuers at last began to contribute to the trickle of issuance following the traditional late-summer break, the self-proclaimed market leader has proved to be anything but.
While Pfandbrief market participants have been busy assuring everyone that the 200-year old product is an island of calm in the tumultuous seas of today’s financial markets, the sheer lack of issuance...
