• Issuance started the year on a robust footing, with broadly similar volumes compared to the same period in 2023. The main driver is the retreat of central bank liquidity schemes. • Market appetite for longer-dated issuances is decreasing asset-liability mismatch, however, relatively high new issuance coupons are depressing excess spread. • Our country-specific market insights outline the potential implications of economic and house price forecasts on our ratings. Our ratings outlook on covered bonds remains stable in 2024.