Financial Times FT.com

Banks take advantage of low yields

By David Oakley

Published: November 24 2009 18:23 | Last updated: November 24 2009 18:23

The covered bond market, which has surged this year on the back of European Central Bank intervention, saw two significant deals on Tuesday as banks sought to take advantage of low yields and lock in longer term secured lending.

The market, dominated by European banks, was kick-started in May when the European Central Bank pledged to buy €60bn ($90bn) of these safe securities.

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