Covered bond market reopens cautiously

From now until December 14, market-makers will be compelled to make at least €5 million in markets to each other, at three times the normal bid/offer spreads, to keep liquidity high in the market. This compares to a previous minimum market of €15 million.

The ECBC closed the market on November 21 to damp down market volatility and prevent spreads from widening too far.

See also: Interbank covered bond market shuts down

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