Covered Bonds

Aareal Bank managed to attract orders of more than £550m for its £250m Pfandbrief, reflecting the fact that the bonds offer tremendous value relative to senior unsecured and corporate debt. The deal followed a tap of similar size issued by Swedbank.

Caixa Económica Montepio Geral has mandated lead managers to market the first publicly syndicated Portuguese conditional pass through (CPT) covered bond using a structure that is somewhat different to Dutch CPTs.

The subscription ratio of a seven year covered bond issued by SR Boligkreditt this week was higher than any Norwegian deal issued in at least six years.

Credit Mutuel Arkéa (CM-Arkéa) this week issued the tightest French 10 year covered bond in euros this year with a deal that gave funding that was cheaper than anything it had previously issued.

Investors piled into a Unione di Banche Italiane (UBI) €1.25bn 10 year Obbligazioni Bancarie Garantite on Monday, despite it offering no new issue premium and being the issuer’s largest and longest transaction in at least six years

National Bank of Greece (NBG) is poised to issue the first post-crisis Greek covered bond, having drawn confidence from the blowout reception Santander Totta won for its €1bn 10 year this week — the longest Portuguese deal since 2010. Bill Thornhill reports.

Vseobecna uverova banka and Stadtsparkasse München have both been keeping the sub-benchmark covered bond market busy with deals this week.

Commonwealth Bank of Australia subsidiary, ASB Finance, has mandated leads for a roadshow to market its first covered bond of the year and the third from a New Zealand issuer.

Nationale-Nederlanden (NN Bank) has mandated leads to market its first covered bond, which will have an intermediate conditional pass-through maturity.

The Cover's 11th annual covered bond awards took place this year at Casa Llotja de Mar in Barcelona on Thursday, September 14. The awards reflected the judgment of more than 600 market participants, including over 300 investors, who reported buying €150bn covered bonds in the past 12 months.

PKO Bank Hipoteczny extended its covered bond curve this week with a deal that was more widely distributed and attracted more demand than any of its previous deals.

If the market commentariat thinks that the buy-side should be worried by upcoming European Central Bank tapering, then someone has yet to tell investors.