... demand and supply factors and has changed financial markets in mature and emerging countries alike.2 From the demand side, favorable macroeconomic conditions, falling interest rates, and ... favorable risk-return profile and a very liquid market. In this paper, we examine the two largest “jumbo” covered bond markets, Germany and Spain. We show how movements in covered bond prices can ... Prices, Household Debt, and Financial Stability , Spain Financial Stability Assessment Program, International Monetary Fund, June, 2006. Morgan Stanley, 2005, “Asset Swaps and Swap Spreads"...