Covered bond investor survey ECBC Covered Bond Fact Book 2025

Dear all,

the ECBC Covered Bond Fact Book has been the go-to reference guide for all things covered bonds for years. An integral part to each edition has been the investor article, a piece that is more important now than ever with the market having moved back to more normal waters after years of ECB dominance. Issuance volumes have surged in 2022 and 2023 and while 2024 has been slightly slower, we are still talking about large supply volumes. Equally, investor appetite broadened out with existing accounts becoming more active again and new investors discovering covered bonds.

We have run the almost identical survey for the past two years already (for the full article, please check out last year’s ECBC factbook). For this year’s edition, we have only taken out questions linked to the covered bond directive and added two questions on assessing relative value as well as the potential impact on covered bond markets from increased public sector spending on defence.

The survey will be open until 6 June 2025 and the anonymised results will be published as part of the ECBC Covered Bond Fact Book 2025.

Many thanks for your help!

Florian Eichert (CA-CIB), Frederik Kunze (Nord/LB), Niek Allon (Nationale Nederlanden Bank)

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* 1. Have you become more active in covered bond markets in 2024/2025 compared to previous years?

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* 2. If so, where has your activity picked up? (multiple answers possible)

Primary markets

Secondary markets

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* 3. In case your activity has picked up, what has been the main driver? (multiple answers possible)

Higher interest rates

More conservative asset allocation

Attractive RV vs rates products (EGBs / SSAs)

Attractive spreads vs credit / senior preferred

Better secondary market liquidity

Other (please specify)

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* 4. In case your activity has slowed down, what has been the main driver? (multiple answers possible)

Increased allocation to EGBs/SSA

More attractive spreads of credit / senior preferred vs CB

Expected spread widening of CB

Low secondary market liquidity

Other (please specify)

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* 5. How do you currently assess relative value of covered bonds (multiple answers possible)

Against swaps

Against EGBs

Against SSAs

Against credit / senior preferred

Outright yields

Other (please specify)

Investor concerns

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* 6. What are your main concerns around covered bonds at present? (multiple answers possible)

We have no concerns

Concerns around issuer quality

Concerns around collateral quality

Concerns around too much covered bond supply

Crowding out from too much public sector supply

Regulatory changes

Other (please specify)

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* 7. In which areas are your main concerns around collateral quality (if any)? (multiple answers possible)

Public sector assets

Residential mortgages

Commercial mortgages

No concerns

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* 8. What impact do you expect for covered bonds from higher public deficits / supply linked to defence spending?

Regulatory topics

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* 9. What is your view on covered bond third country equivalence as foreseen in the CBD (multiple answers possible)?

It is still too far away for us to pay much attention

Once implemented, it would change the way we assess relative value between EEA and third country based covered bonds

Once implemented, it would allow us to increase our exposure in the sectors

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* 10. In which maturity structures are you able to invest?

ESG

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* 11. Do you have a specific ESG mandate? (multiple answers possible)

Yes, green

Yes, social

Other (please specify)

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* 12. What makes a covered bonds investment “ESG compliant”? (multiple answers possible):

Designation as green / social / sustainable covered bond

Specific issuer sustainability rating

Combination of both

Other (please specify)

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* 13. Do you look at covered bonds issued as green or social bonds differently to conventional covered bonds (multiple answers possible)?

Yes, we can buy bigger size

Yes, we accept smaller NIPs

Yes, we accept pricing through conventional curves

Final Questions

Covered bond investor survey ECBC Covered Bond Fact Book 2025

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* 1. Have you become more active in covered bond markets in 2024/2025 compared to previous years?

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* 2. If so, where has your activity picked up? (multiple answers possible)

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* 3. In case your activity has picked up, what has been the main driver? (multiple answers possible)

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* 4. In case your activity has slowed down, what has been the main driver? (multiple answers possible)

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* 5. How do you currently assess relative value of covered bonds (multiple answers possible)

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* 6. What are your main concerns around covered bonds at present? (multiple answers possible)

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* 7. In which areas are your main concerns around collateral quality (if any)? (multiple answers possible)

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* 8. What impact do you expect for covered bonds from higher public deficits / supply linked to defence spending?

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* 9. What is your view on covered bond third country equivalence as foreseen in the CBD (multiple answers possible)?

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* 10. In which maturity structures are you able to invest?

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* 11. Do you have a specific ESG mandate? (multiple answers possible)

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* 12. What makes a covered bonds investment “ESG compliant”? (multiple answers possible):

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* 13. Do you look at covered bonds issued as green or social bonds differently to conventional covered bonds (multiple answers possible)?

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* 14. What type of investor are you?

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* 15. What country are you located in? Please specify

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* 16. If you are happy to share your name, please do so here (to avoid getting chased a second time)