A $1bn asset-backed bond deal has been awarded the best-ever pricing, in the latest sign of investor appetite for higher yielding assets. Investment bankers forecast pricing could become even tighter as demand showed no sign of letting up.

Prices on a wide range of bonds have risen as yield spreads, or the premium offered over government bond rates, have fallen to record low levels. That has been particularly true of riskier assets as money managers have sought to put their cash to work.