Covered Bonds

Eurobank Ergasias is set to issue its first covered bond some 80bp tight of the Greek sovereign, exactly mirroring the pricing differential that National Bank of Greece (NBG) achieved with its larger trade in the same tenor two weeks earlier.

WL Bank and Berlin Hyp this week followed last week's lead by Helaba, taking advantage of a quiet market and historically tight covered bond spreads to launch two tightly priced €250m Pfandbrief taps at the long end of the curve this week.

PKO Bank Hipoteczny has mandated for a Polish zloty-denominated covered bond deal, following on from mBank, which has issued Z1.5bn in the domestic market recently.

Eurobank Ergasias has mandated leads for a roadshow, marketing a near replica transaction of National Bank of Greece’s (NBG) three year conditional pass-through that was issued last week.

Bank of Montreal (BMO) became the first Canadian name to issue a covered bond in euros since March with a €1.5bn trade on Thursday.

Helaba faced few difficulties on Thursday with a €250m tap of a ten year bond.

The European Commission has asked the European Banking Authority (EBA) to consider how European Secured Notes (ESNs) should be treated for regulatory purposes. The future of ESNs is expected to depend on their regulatory treatment, bankers said.

KBC Bank took full advantage of limited Belgian covered bond supply this year to radically tighten pricing for its first deal of the year, only the second Pandbrieven of 2017.

SP Mortgage Bank’s second covered bond brought in many new investors enabling the transaction to price inside interpolated fair value. With more buyers chasing this name and more trading desks expected to quote it, SP’s curve has a fair chance of repricing tighter.

Eurobank Ergasias has mandated leads for a roadshow, marketing a near replica transaction of National Bank of Greece’s (NBG) three year conditional pass-through that was issued last week.

Muenchener Hypothekenbank (MuHyp) doubled the size of its 10 year Pfandbrief tap despite pricing it at extremely tight levels, as SP Mortgage Bank announced plans to proceed with its second ever benchmark. Unlike SP's debut last year, the new deal will probably be priced through mid-swaps.

Covered bond investors are stoical on the outlook for Catalonia and prospective asset tapering. But one was less enamoured with deals issued this week by National Bank of Greece and Caixa Económica Montepio Geral.