The Covered Bond Market in the First Half of 2018

Even more so than the question of how the third Covered Bond Purchase Programme (CBPP3) would be continued, the main focus of interest when this year began was on expectations regarding issue volumes and spread movements. At the end of the first six months, we wish in the following to take a closer look at developments in H1 2018.

At a glance:

• Fourth-strongest first half-year so far this century
• German issuers gain considerable momentum, France holds slight lead
• Number of green and sustainable benchmark issues doubled
• ECB still among largest investors, but share falling
• Slight upward trend for risk premiums, predominance of political risks
• Issue forcast adjustment for 2018 as a whole