#10 - Covered bond research

Covered bond issuance remains dynamic, with €5bn issued since the beginning of the week. Long - dated covered bond s have become more prominent with deals exceeding or equal to 7 years now accounting for 39% of May's supply compared to just 20% last April. Despite this trend, investors continue to favor shorter maturities as reflected this week by an average oversubscription ratio of 2.8x for deals below 7 years compared to 2x for those of 7 years or more. Analysis of the covered bond investor landscape : Banks remain the largest players in the covered bond market but continue to decrease their allocation . This decline has been offset by the higher participation from Central banks and official institutions, representing now 21% . In terms of geographic breakdown, w ith a share of 39%, German and Austrian investors continue to a major role in the covered bond market, even though their participation declined by 5pp compared to last year. Nordics investors have been more involved in covered bond deals this year (+4bp vs 2024, reaching 16%). Given the lower pick-up vs OAT, participation from French investors has experienced the most significant decrease accounting now for 7.6% (-5pp compared to last year ).