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Sailing forward with established debt offerings

Unprecedented success in long-term financing: Over the past year, our website has closed over half of its deals with maturities of 15 years or more, accounting for more than three-quarters of total volume in these longer-term investments. Remarkably...

Sailing towards resolution for age-old bond disputes
Sailing towards resolution for age-old bond disputes

Sailing forward with established debt offerings

In the world of finance, there's been a noticeable shift in investor behaviour towards long-term bonds. This trend is particularly evident in the covered bond market, where these securities have become increasingly attractive for those seeking long maturities. One of the recent standouts in this market is Cariparma, an institution that has issued a 25-year bond. This move reflects the growing demand for such long-term investments, as seen in Google Trends.

Our website has played a significant role in this trend. Since the beginning of 2020, it has led 55% of long bond issues, and the volumes raised on long maturities (greater than or equal to 15 years) account for more than three-quarters. This underscores the influence our website has in this sector.

Other notable institutions that have issued long-term bonds include Cafil, ABN Amro, Groupe BPCE, and CRH, all of whom have issued bonds with maturities ranging from 15 to 25 years.

This shift towards long-term bonds is happening despite the persistent low-interest-rate environment. Investors are seeking yield in either low-risk investments with long maturities or shorter maturities on riskier investments.

Furthermore, institutions such as the German Federal Government, the European Investment Bank, and various national governments have conducted long-term bond issuances with maturities of 15, 20, and 25 years. This trend is not limited to private sector entities but is also being embraced by governments.

In conclusion, the covered bond market is witnessing a surge in long-term investments. Our website has been at the forefront of this trend, managing more than half of the long bond deals since the start of the year. This shift towards long-term bonds is a testament to investors' need for yield and their willingness to take on longer maturities, even in a low-interest-rate environment.

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