Covered Bonds

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Canadian Imperial Bank of Commerce (CIBC) has mandated leads for its first euro covered bond since January 2018.

Covered bond spreads are so tight and yield so low, that a correction is probably overdue. But strong technical factors will continue to support the market — at least until September.

Société Générale is expected to issue its first ever deal from its positive impact covered bond framework, after meeting with investors in the euro market this week.

GlobalCapital has launched its poll to determine the 2019 winners of its Sustainable and Responsible Capital Markets Awards. Market participants are invited to participate.

The European Banking Authority (EBA) has published a bold consultation paper setting out guidelines for loan origination and credit monitoring. Although the paper is likely to be welcomed, some areas will probably be burdensome for banks to comply with.

Axa SFH issued its debut covered bond on Thursday, attracting a comfortably oversubscribed order book for the positive yielding eight year, which was priced at close to fair value. At the same time, Nationwide Building Society took advantage of the Swiss National Bank’s more generous repo arrangements to issue a three-part covered bond denominated in Swiss francs.

Credit Suisse Switzerland issued its debut covered bond from its newly structured programme on Wednesday, achieving a very solid outcome in a short time frame. And the Swiss franc-denominated covered bond was quickly followed by another from the UK’s Nationwide Building Society.

Landesbank Hessen-Thüeringen Girozentrale (Helaba) sold the first negative yielding covered bond since 2017 on Wednesday, attracting good demand for the €750m five year Pfandbrief.

UniCredit AG issued its first dollar Pfandbrief on Tuesday, shortly after DekaBank had quickly wrapped up a sub-benchmark eight year. The two deals followed an inaugural sub-benchmark seven year from Slovakia’s Tatra banka that was priced on Monday.

UniCredit’s German subsidiary, HVB, has mandated leads for the first dollar covered bond in its 150 year history reflecting a preference to avoid issuing a negative yielding euro benchmark.

Credit Suisse has published a base prospectus for its newly set up covered bond programme, suggesting it may be ready to make a formal deal announcement in the next few days.