-- Daniel O’Leary
Europe’s covered bond market has split between the strong traditional core covered bond markets and the weaker periphery countries, according to Bernd Volk, head of covered bond and agency research at Deutsche Bank.
The market has now moved to a low yield environment, with many new primary deals only offering pickup yields of 2-3%, he said. “Investors are going to be less inclined to buy bonds from weak issuing countries for that sort of yield,” he said. “They’d much rather buy from the....