Covered Bonds

The covered bond market was quiet this morning, despite expectations in some quarters that Stadshypotek was going to announce a new issue. Some syndicate managers had been expecting an announcement this morning, but said that the poor results from UBS might have been a deterrent.

Natixis has climbed into third place in the overall benchmark league table and taken pole position in the euro jumbo ranking at the end of the third quarter, but there is everything to play for before year-end.

In the UniCredit* Nordic covered bond roundtable participants discussed the boom in euro issuance from the region, and what differences and similarities there are between issuers and markets.

Compagnie de Financement Foncier reopened the obligations foncières sector today with a Eu1bn five year issue priced at mid-swaps flat that confirmed the covered bond market’s recovery.

Dominion Bond Rating Service will face a long and bumpy road in its attempt to crack the covered bond market, said analysts surveyed by The Cover ahead of the rating agency’s expected announcement of its methodology next month.

That Sparebank 1 and Landesbank Baden-Württemberg showed this week that successful new issuance is possible is undeniable, given the Eu9bn of orders placed for the Eu3.5bn of supply. But ironically some issuers are now less, rather than more likely to tap the market.

Erste Bank launched its first euro denominated public sector backed covered bond in the international market yesterday (Thursday), a two year floating rate note that was increased from Eu100m to Eu150m and then Eu160m on the back of strong demand.

Caisse de Refinancement de l’Habitat expects to price a Eu2bn three year issue this (Thursday) afternoon, which will be its first transaction to include a market-making commitment.