Covered bonds – monthly over­view

Landsbankinn sold covered bonds in the series LBANK CB 25 for ISK 2,200m at 4.35% yield (0.56% spread on RIKB) in its offering on 10 November. Arion Bank sold shares in the series ARION CB 24 for ISK 1,720m at 3.85% yield (0.27% spread on RIKB) in its offering on 3 November. Previously issued bonds were sold. Íslandsbanki did not hold an auction in November.

LBANK CB 21, of nominal value ISK 6,820m, matured on 30 November. ARION CBI 21, of nominal value ISK 10,220m is due on 16 December.

The yield on nominal bonds has increased YtD and returns lie between -2.1% to 0.7%. The yield on most index-linked bonds has decreased since the beginning of the year. The return on them is much better, between 4.3% to 8.2%.

Covered bonds – monthly overview