Covered Bonds

The Covered Bond Marker is a confidential survey designed to show what the market really thinks about the latest covered bond deals. Market participants are cordially invited to mark a range of recently priced euro benchmarks.

Credito Emiliano (Credem) is planning a series of fixed-income investor meetings from October 1 to reintroduce its soft bullet covered bond programme.

Deutsche Pfandbriefbank (PBB) this week attracted greater demand than Aareal Bank for its December 2021 sterling Pfandbrief, even though it was priced at the same spread and had a lower credit rating. Both deals had a lot of German demand reflecting a sterling’s pick-up to euros.

ING Belgium's order book for a €1bn eight year issued on Thursday was larger than any for a covered bond of this size since January. The exceptionally strong bid is something that other issuers will look to take advantage of before Eurosystem purchases are scaled back again.

Even though it’s likely the European Central Bank will lower purchases of covered bonds before long and despite a relatively busy pipeline, dealers are sanguine about the outlook for spreads.

GlobalCapital’s 12th annual covered bond awards took place this year at BMW Welt in Munich on Thursday, September 13. The awards reflected the judgment of almost 400 market participants, including 170 investors, who reported buying €100bn of covered bonds in the past 12 months and with over €600bn in covered bond assets under management.

Nationale-Nederlanden Bank (NN Bank) returned to the covered bond market for the second time this year to issue a comfortably oversubscribed €500m 10 year conditional pass through structure that was priced 1bp tighter than where NIBC Bank issued a similar deal two weeks ago.

Landesbank Hessen-Thüringen Girozentrale (Helaba) attracted a thinly oversubscribed order book for a €1bn seven year mortgage Pfandbrief issued on Tuesday. Even though the bonds offered a generous premium to their own curve, they were priced much tighter than other recent seven year benchmarks.

The European Covered Bond Council (ECBC) has updated and enhanced its Harmonised Transparency Template (HTT). The addition of two new currencies implies scope for more covered bond issuers, potentially from a new jurisdiction.

The distribution of the votes for the 2018 Covered Bond Awards.

The European Mortgage Federation — European Covered Bond Council (EMF-ECBC) has reached consensus on four critical areas of concern in response to a draft report from the European Parliament’s Economic & Monetary Affairs Committee (ECON) on the European Commission’s proposals for a covered bond legislative framework.

Moody's has praised Lloyds Bank’s first sterling Sonia-linked covered bond for being an "essential" development that will help to create a market for similar deals and limit disruption from the move away from Libor.