Covered Bonds

After a near two year absence, Deutsche Bahn pulled into the Swiss franc market to issue 15 year debt with no new issue premium this week, landing inside its own euro curve.

Muenchener Hypothekenbank (MuHyp) has mandated joint leads for a 20 year Pfandbrief, the longest covered bond so far this year.

DNB Boligkreditt issued a covered bond on Thursday that became its most oversubscribed covered bond ever, equalling the bank’s biggest ever order book. The deal, secured on green mortgages, was priced through its vanilla curve, clearly demonstrating the demand for covered bonds.

The prospect of Italy's government collapsing began to take its toll on bank debt markets on Thursday morning, with some new issues underperforming in light of the crisis.

Natixis has promoted four DCM co-heads in its financial institutions and corporate origination business lines.

The covered bond market went from famine to feast on Wednesday with a wide array of deals that all went very well.

Komerční banka sold the Czech Republic’s first euro denominated benchmark covered bond on Wednesday, landing flat to the curve of its Slovakian neighbours despite the European Central Bank’s absence from the book.

Latvian covered bond legislation permitting the cross-border recognition of cover pool assets is expected to be enacted later this year. The new law is considered to be essential for the development of a pan-Baltic covered bond market, legal experts have said.

Deutsche Pfandbriefbank (PBB) has mandated leads for a three year dollar covered bond in a move that underscores the importance it attaches to matched currency funding.

Nomura has expanded its covered bond trading capacity with a new hire from BNP Paribas.

The unprecedented shortage of primary covered bond supply, mounting redemptions and depleted trading inventories have created an acute squeeze on pricing. A much bigger wave of investors will soon be forced to exit the market if new bonds don't materialise.

Caisse Francaise De Financement Local (Caffil) issued only the second covered bond of the year in a large size on Monday, pricing the deal flat to its curve. Despite the prospect of mounting covered bond redemptions, the supply outlook remains abysmal, suggesting spreads will tighten more.