ETF Spotlight: Investment Grade Covered Bonds | Page 2 of 2 | ETF Trends

The Latest News:

  • Marcus Schulte, head of European FIG DCM at Credit Suisse, said that covered bond issuance has declined 20% over the last year as peripheral banks seek out ways to free up balance sheets, reports Aimee Donnellan for Reuters.
  • “Investors want to know what assets have already been pledged away,” Schulte said in the article. “Peripheral banks will still use the market, but until they overcome these challenges issuance will fall behind.”
  • Instead, European banks are seeking capital and senior unsecured funding as credit spreads look more attractive.

ProShares USD Covered Bond ETF

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.