Covered Bonds

DnB Nor Boligkreditt debuted in the Swiss franc market yesterday (Wednesday), selling a Sfr500m (Eu250m) issue split equally into five and seven year tranches through Credit Suisse.

Compagnie de Financement Foncier wrapped up a busy two days in the markets yesterday (Wednesday) afternoon, pricing a $1.25bn (Eu890m) three year Eurobond hours after selling the largest ever obligations foncières issue, a Eu2.5bn 10 year deal.

BNP Paribas yesterday (Wednesday) placed a Eu100m public sector Pfandbrief for Landesbank Hessen-Thüringen with the same German account that bought two Eu100m clips of short dated Landesbank Baden-Württemberg paper on Monday.

BNP Paribas is expected to price its Eu2bn two year structured covered bond today (Wednesday) at 4bp over mid-swaps.

Compagnie de Financement Foncier priced the largest ever obligations foncières issue this (Wednesday) morning, a Eu2.5bn 10 year jumbo that reopened the long end of the covered bond market.

A Eu2.95bn issue off the AyT Cédulas Cajas Global programme has been retained as repo collateral and not sold into the primary market.

Standard’s & Poor’s has upgraded Germany-based Hyo Real Estate Bank International AG group from A- to A. This also affected its direct and indirect subsidiaries, Ireland-based Hypo Public Finance Bank, Germany’s Hypo Real Estate Bank, and Luxembourg’s Hypo Pfandbrief Bank International, which receive the same rating.

SEB is set to swim against the tide of domestic opinion with the launch of its inaugural euro denominated covered bond in mid-November. Other Swedish issuers have favoured the strong domestic market over the new pricing levels in euros, but SEB is expecting euro spreads to tighten between now and mid-November.

The Royal Bank of Canada has begun the roadshow for its inaugural covered bond, the first from Canada, which is expected to be launched next week.