Swedbank sold a Eu400m three year senior unsecured FRN on Wednesday that was priced above par in order to avoid the impact of negative rates, and bankers said it had done well to attract over Eu500m of orders and price the deal with no premium in light of using a still-novel elevated coupon.

With an increasing share of the covered bond market trading at negative yields, Crédit Agricole CIB analysts Florian Eichert and Stephan Dorner explore the impact on issuers and investors.