A flurry of deals priced ahead of Jackson Hole, while others go on the road over the next couple of weeks. Investor reception to deals that printed was robust; buyers clearly not letting rates volatility, yield implosion/inversion, rock-bottom spreads, geopolitics or cries of recession get in the way.

Underwriters on some of the trades started out, reasonably, a little cautious on pricing but ratcheted in quickly as strong momentum emerged. Berlin Hyp printed the lowest yield ever on a new covered bond, while the week also saw Danske Bank and Swedbank tick the boxes despite money-laundering concerns. In these somewhat weird markets, zero yields have long since stopped being a deal breaker. Sellers are still finding solid demand below the line with spread players (if not absolute yield players), who can still book relative-value pick-ups to governments and/or the ECB depo.

Read the full article by Keith Mullin