The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Europe expects dollar covered bonds

With no legal framework for covered bonds in the US, institutions in Europe should be preparing to take advantage of the enthusiastic investor base that already exists there with dollar-denominated bonds.

"There's only been one European deal so far this year, but the US investor community is very interested in covered bonds," said Tim Skeet, head of covered bonds at Bank of America Merrill Lynch and a board member of the International Capital Markets Association.

The opportunity to diversify their investor base will be the biggest draw for banks, and should make the additional work worthwhile.

"It's almost a no-brainer for European banks to look at the opportunities," he continued. "The US market is supporting so-called Yankee issuance and the covered bond format has proved a winner."

But new issuers should not assume that US investors have the same knowledge as the European buyers they are used to dealing with. Though investors' appreciation of covered bonds has improved through debating the potential US legislation, banks will still have to provide a lot more information than they might be used to.

Added to the extra documentation and 10b-5 disclosure required to launch a 144A programme in the US, this means that in-house legal teams will be busy preparing their sales teams to make the most of investor roadshows.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree