About €14 billion worth of high-quality covered bonds from European banks hit credit markets last week, and issuance does not appear to be slowing down. Benchmark deals came from banks in France, the Netherlands, Spain, Portugal, Italy and Sweden, and this week is starting off strong with several deals in the pipeline. "The [European Central Bank] and euro-zone central banks have been very effective in implementing their purchase programme, so people feel that there is inherent support for covered bonds," said Ted Lord, Barclays Capital's head of European covered bonds.

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