Covered Bonds : Investor Covered Bonds Survey 2018

During the course of November, we undertook an investor survey to assess the market sentiment for 2019 . Now that the survey is closed, 50 investors have responded and we present the results below . We would like to thank every respon dent for their time and answers. Covered bond issuance to remain dynamic : Most survey participants predict a range between €120 to 130bn (47%). Limited spread correction : Most investors are expecting a spread widening for 2019 (86%) but most are considering a correction between +2 to 10bp (71%) and only 15% more than 10bp. Covered bond preference : In terms of asset-class types, Covered bond investors surveyed have a strong preference for Covered bonds backed by mortgage loans (96%), followed by public loans (43%). New jurisdictions could develop next year : E specially in Poland and in Asia; 45% and 32% of investors surveyed are able to invest in Polish and Singapore covered bonds. Green bonds : Green/Sustainable covered bonds have considerably developed in 2018. However, 93% of investors surveyed are not ready to pay a greenium (negative NIP) for green covered bonds. Impact of the end of Quantitative Easing : Investors surveyed consider that the most likely result of ending the Quantitative Easing is a widening of spreads in general (57%) and higher New Issuer Premium (27%) Contents 1. Primary and secondary market 2 1.1. Biggest Concerns 2 1.2. Covered bond issuance to remain dynamic 2 1.3. Limited spread correction and growing appetite 3 2. Covered bond preference 4 2.1. Asset-class types and maturity 4 2.2. Green bonds and new jurisdictions 4 2.3. Ratings and Relative Value 5 3. 2019 Regulatory/political environment 6 3.1. Impact of the end of the Quantitative Easing: 6 3.2. Brexit and harmonization of the EU covered bond frameworks 6