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. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Covered bonds: Wachovia is the next US issuer

Buzz over US continues, but Europe still getting its act together.

Wachovia will be the second US bank to bring a covered bond to market, hot on the heels of Washington Mutual’s successful dual-tranche issue. Rumour has it that ABN Amro and Barclays Capital are in charge of the structuring of the deal. They also underwrote the WaMu deal, indicating that they are the front runners in what is presently one of the most dynamic sectors in the vanilla bond markets.

Wachovia Bank is rated Aa2/AA–/AA– by Moody’s, S&P and Fitch and is the fourth-largest bank in the US measured by market capitalization. Exact details of its intentions are at present scarce but it seems highly likely that it will follow closely the template established by its west coast compatriot. The deal is scheduled to be unveiled early this month, and will most likely include a full European roadshow.

Excitement

The excitement surrounding the annual Euromoney/European Covered Bond Council congress in Madrid in early September was palpable, not least because the US market is set to take off and market participants were enthusiastic about the possibilities. Virtually all of the major European borrowers were at the gathering and those quizzed were excited at the prospect of finally getting US investors interested in a product that is second only to the treasury market in terms of outstandings.

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.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

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

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, 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

LOGIN NOW

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