Covered bonds, the high-quality bank debt that central banks on both sides of the Atlantic have identified as a potential tool to increase lending, has got off to a roaring start to 2010 with record year-to-date issuance.

Global covered bond volume stands at a record year-to-date high of $117.6bn (€88.09bn), according to data provider Dealogic, up from $33.7bn during the equivalent period in 2009.