Global Covered Bond Update: Summer vibes from Frankfurt

Research evidence excerpt

Global Covered Bond Update: Summer vibes from Frankfurt

J P M O R G A N Europe Credit Research

26 June 2026

Global Covered Bond Update

Summer vibes from Frankfurt

• We braved the unusual heat in Frankfurt this week to attend the 13th annual Europe Corporate Credit - Covered

Covered Bond Investor Conference organised by, among others, ICMA. While Bonds and UK Housing

the temperatures approaching 40C recently have been materially higher than Associations

anyone would wish for in the summer, we left Frankfurt with no such Suraj Dey, CFA AC

‘excessive’ feeling among the covered bond community in relation to the (44-20) 7134-1722

product. suraj.dey@jpmorgan.com

J.P. Morgan Securities plc

• Instead, the conference struck a positive ‘summer vibes’ undertone with Prakhar Agarwal

limited reservations for any meaningfully unfavourable developments, (91-22) 6157 3046

and rather appreciating the resilience of covered bonds in the face of prakhar.x3.agarwal@jpmchase.com

copious macroeconomic uncertainties this year, and pointing to a broader J.P. Morgan India Private Limited

adoption of the asset-class via the advent of new jurisdictions, issuers and even

the ‘covered bond like’ ESN product in 2026 YTD. As such, the covered bond

community seemed to exhibit satisfaction with a ‘told you so’ performance of

the covered bond market YTD, primarily in terms of the reception of new issue

deals, as a host of reasons such as benign supply-demand technicals, decently

attractive spreads and cross-asset RV, as well as good all-in yields to begin the

year with have all proved helpful, as was expected heading into 2026.

• To this end, while the very recent weakness earlier this week was

acknowledged, the community perceived this as not a sign of upcoming