UBS sold its second dollar covered bond in just over two months yesterday (Tuesday), a $2bn five year deal that a lead syndicate official said attracted “truly global” demand in a sign that the market is maturing.

The Swiss bank priced the transaction at 105bp over mid-swaps, the tight end of guidance of 105bp-110bp. Its inaugural dollar benchmark covered bond, a $1.5bn three year that was sold on 19 January, was reoffered 30bp wider, at 135bp over.

A syndicate official at one of the leads on yesterday’s deal – Citi, CIBC, Deutsche Bank, JP Morgan and UBS – said the January 2015 issue was trading at around 80bp over.

He highlighted “truly global” distribution as a particularly interesting and positive feature of the transaction.

“It feels like the market is coming of age,” he said.

The deal was significantly oversubscribed and priced on the back of a very high quality order book, he said, with many European and Asian accounts participating in addition to US investors.

“It was an incredibly strong transaction,” he said.

Some $2.9bn of orders are said to have been placed for the deal.

The lead syndicate official put the euro equivalent spread over mid-swaps at 35bp over.

But syndicate bankers away from the deal saw the euro equivalent level at around 45bp over mid-swaps, with one saying this is where a five year UBS deal would come in euros.

“There’s no more arbitrage,” he said.

Natixis analysts today (Wednesday) noted that while secondary market spreads for US dollar covered bonds have rallied “massively” since the end of 2011, they have been trading a bit heavier since a couple of days following renewed uncertainty over European sovereigns.