By 2004, mortgage-backed securities and covered bonds were in fierce competition to attract an alpha-hungry global investor base. At the same time, national market covered bond issuers were in fierce competition with each other. In 2004, we undertook a one-year market positioning mandate for all covered bond issuers in the Nordic countries (Denmark, Sweden, Norway and Finland). Our goal was to help differentiate Nordic issuers from their counterparts in other EU countries and raise their profile among global bond investors. The mandate concluded with a new event, the EuroCatalyst IN(vestment) FOCUS series. Held in Frankfurt, Germany, the event brought together 132 fixed income investors from 11 countries, including 6 sovereign wealth funds (SWFs). The following year, investment in Nordic Covered bonds increased by an estimated 23%. As l’ve mentioned earlier in this history, the predominant European covered bond is the mighty German Pfandbrief (phonetically pronounced “fond-brief”). The name of the newly-minted Finnish covered bond was so difficult to pronounce that Tim Skeet dubbed it “the Funbrief”, and the name actually stuck. The Germans were not amused. In a EuroMoney article that referenced the event (as well as the Funbrief), in his headline lan Kerr bestowed upon us the greatest compliment: “EuroCatalyst Makes Covered Bonds Sexy”.

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