The arrival of US issuers represents a major shift for the global covered bond market, both in terms of the likely effect on total supply in the coming years and the deepening of the domestic US investor base for European issuers.
The first ever deal came from Washington Mutual last September, with a €4bn offering lead managed by ABN AMRO, Barclays Capital and Deutsche Bank. In mid-March, the second transaction out of the US was being roadshowed across Europe: Bank of America also decided to issue in euros, in a deal lead managed by ABN AMRO, Deutsche Bank and Bank of America Securities.