Covered Bonds

Banco Comercial Portugues returned to the covered bond market after an eight year absence on Tuesday, selling a €1bn five year deal.

Moody’s now takes a more lenient approach to rating covered bonds compared to newcomer DBRS, DZ Bank covered bond research analysts have revealed. The change should help protect its share of the market which may be shrinking due to the prevalence of covered bonds with only one rating.

Moody’s ratings for covered bonds are now almost as lenient as newcomer DBRS, DZ Bank covered bond research analysts have revealed. The change should help protect its share of the market which may be shrinking due to the prevalence of single covered bond ratings.

Matej Chytil has left Crédit Agricole’s covered bond trading team to return to National Bank of Slovakia where he used to work.

Sparebanken Sør Boligkreditt issued its second ever covered bond and, similar to deals issued last week, was able to price flat to its curve. But its bonds are not eligible for the ECB's purchase programme, unlike some of last week's tightest issues, which could limit performance potential.

The robust demand that Rabobank reeled in for its two part debut covered bond issued on Monday provided the basis for an aggressive spread tightening, especially in the longer-dated tranche.

Sparebanken Sør Boligkreditt finishes its roadshow on Friday and is expected to issue a €500m deal early next week said leads. Banco Comercial Portugues and Rabobank also finish their roadshows on Friday and could well be expected to emerge next week.

The benefits of covered bond harmonisation far outweigh the costs, according to an independent report undertaken on behalf of the European Commission and published on Friday.

Financial institutions took a step back from the primary market on Thursday, as a resurgence in US political risk helped stunt an impressive rally and push credit spreads wider.

The Bank of Queensland’s (BoQ) conditional pass through (CPT) covered bond works differently from Dutch CPTs as there is a higher likelihood of prepayment.

Green covered bonds have been slow to take off, but the greater flexibility offered by European Secured Notes (ESNs) should have broader appeal for borrowers and investors alike.

After adding more green loans to its cover pool, Berlin Hyp (BHH) is now ready to return to the Pfandbrief market and on Tuesday mandated leads for a roadshow ahead of its second green mortgage-backed deal.