The covered bond market has shuddered to a halt. Increasingly negative repercussions for pricing in the European jumbo market have caused the inter-bank market-making of jumbo covered bonds to be suspended on the recommendation of the European Covered Bond Council’s "eight to eight" committee of market makers and issuers. Conditions are even worse than in September, and the possibility of the entire covered bond market shutting down until the new year is increasingly plausible.
Even on the assumption that it will reopen in January, many banks have been left wondering what they have to do to secure a mandate. On the basis of distribution, if one has a proper sales force and...
