In the space of three and half hours, interested investors pledged €7.2bn for the Bank of Ireland’s first covered bond, according to an insider. Officials were ecstatic: not only was it their first crack at such an issue, but it had been received enthusiastically by international financial players and over-subscribed by three and a half times.
The deal, in September was a confirmation of something the sector has been aware of for a few years; covered bonds are hot. Their issuance is exploding and there is interest in the product across a broad range of investors, from central banks, through pension funds, right down to high-net-worth individuals.
