Covered Bonds

Liberbank’s inaugural covered bond issued on Wednesday showed that investors are still hungry for paper that offers a positive yield and good relative value. The Spanish deal drew more than twice as much demand as Skipton Building Society’s competing negative yielding transaction, which was the third UK covered bond issued this week.

Demand for euro covered bonds issued on Tuesday by Virgin Money, NN Bank and DZ Hyp has markedly improved from earlier this month, and lead managers have announced a further series of transactions from Royal Bank of Canada, SR Boligkreditt, Skipton Building Society and Liberbank.

A breakdown of how investors, issuers and lead managers voted in the covered bond awards survey 2019.

Lloyds Bank attracted a large and diverse order book for its €750m 10 year covered bond on Monday and has provided ‘the last missing piece’ for bankers working on Virgin Money’s debut euro covered bond, which is expected to be announced soon.

Congratulations to the winners of GlobalCapital's Covered Bond Awards 2019.

Deutsche Bank has announced a round of senior appointments in its primary debt businesses, naming Hoby Buvat head of EMEA leveraged finance origination and Mark Lewellen head of EMEA debt capital markets origination.

The prospective growth of green and sustainable covered bond funding, and the Covered Bond Directive, were key topics at the well attended European Covered Bond Council’s 30th plenary session, held in Munich on Wednesday, especially with respect to the Pfandbrief market, which celebrates its 250th anniversary this year.

As climate change takes hold, banks could incur losses in a very different way from what is typically captured by using credit risk modelling, delegates heard at the European Covered Bond Council’s 30th plenary meeting, held in Munich on Wednesday.

There is typically a degree of consensus among market participants as to what a central bank will say at its upcoming monetary policy meeting. But, days before the European Central Bank’s Governing Council gathering on Thursday — the most important of the year and perhaps ever — there are wide ranging views as to what its president Mario Draghi will announce at his swansong meeting. Someone will get burned.

Caisse de Refinancement de l’Habitat, the specialist French covered bond issuer, has overcome regulatory hurdles and will issue covered bonds following a roadshow.

Prima banka Slovensko is set to become the third Slovakian issuer of euro covered bonds after it mandated lead managers on Monday for a roadshow.

LBBW issued a well subscribed €650m nine year public sector loan-backed Pfandbrief on Monday at a relatively tight new issue concession compared with many recent negative yielding covered bonds.