Covered bond market reopens cautiously

Market making in the European interbank covered bond market reopened this afternoon, after being closed since last week, but with new conditions imposed by its governing body, the European Covered Bond Council (ECBC).

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here