Covered Bonds

Danske Bank is restructuring its Finnish subsidiary in a move similar to Nordea’s last year and has requested investors’ consent to change terms, which will not have a rating impact, in return for a 10bp fee. The change could prevent the issuer from returning to the market soon.

KA Finanz’s plans to convert into a wind down institution will strengthen its link to the Austrian state, but uncertainty over the regulatory and credit rating status of its covered bonds could cause its spreads to widen, said analysts this week.

Kommunalkredit has invited noteholders to tender a trio of Swiss franc covered bonds.

Sparebanken Sør Boligkreditt has mandated joint leads for a roadshow to market its second euro covered bond.

Caffil enjoyed very strong demand for a two tranche covered bond offering on Wednesday and showed just how much the squeezed technical backdrop is forcing investors' hands.

Westpac has mandated leads for a roadshow to look at issuing a senior unsecured or covered bond in euros. The tight spread between the two asset classes could restrict covered bond supply.

Münchener Hypothekenbank issued a comfortably oversubscribed €500m 10 year Pfandbrief on Tuesday, and priced the deal with a small concession and a decent amount of central bank support.

After rallying hard over the past week covered bond spreads have begun to stabilise, especially in France where Credit Agricole’s well-performing €1.5bn 10 year helped sate appetite. Traders reported bigger price dislocations in the peripheral covered bond market.

Yapi ve Kredi Bankasi said it plans to press ahead with its debut euro covered bond, and after getting regulatory approval Turkiye Is Bankasi (Isbank) has had its programme rated by Moody’s.

Crédit Agricole issued one of three euro benchmark covered bonds this week, attracting demand that topped the combined interest seen in deals issued by Swedbank and HVB.

Santander UK found strong demand for one of its largest ever sterling covered bonds on Thursday and paved the way for Royal Bank of Scotland which is expected with its first deal in more than five years.

Turkiye Is Bankasi (Isbank) has had its mortgage covered bond programme signed off with the Turkish regulator and this week had the programme rated by Moody’s.