Stabilization in covered bonds

After a sharper than expected decline in issuance volume this year, we expect the covered bond primary market to stabilize in 2025. We expect new issues in the total market to amount to EUR 150-160bn. The further development of risk premiums in the coming months will likely depend to a large extent on the development of swap spreads in the SSA segment. This means that they could remain at their current high level for the time being, despite the limited supply of new issues.