UOB brings Asia's first covered bond in euros

Singapore's United Overseas Bank UOB set a key benchmark for Asian banks in the home of the covered bond market on Wednesday, executing the region's first euro-denominated deal with a 500 million $542 million offering.

Covered bonds have been enormously popular in Europe so far this year, with almost 50 billion of issuance, the strongest start since 2012. Indeed, at certain points of the year, when volatility was at its most elevated, they have been the only source of bond funding for European banks, similar to the role they played during the global financial crisis. 

The sector has remained open for bank issuers because covered bonds...