Covered Bonds

Real money sellers were seen in recently issued Italian covered bonds this week, along with some profit-taking at the long end of the French curve, but German Pfandbriefe were well supported and looked cheap relative to bonds issued by German states.

Caja Rural Navarra is planning the first green covered bond of the year. It follows a trio of covered bonds issued by Australian banks and the first transaction to be issued from Nordea in more than a year.

National Australia Bank has mandated leads for a five year sterling floating rate bond, alongside a seven year euro senior unsecured benchmark.

The European Central Bank is set to introduce higher repo haircuts for retained covered bonds with soft bullet and conditional pass through maturities, a move that some believe could weaken secondary market spreads. The central bank is also introducing minimum disclosure requirements for covered bond ratings.

Real money sellers were seen in recently issued Italian covered bonds on Thursday, along with some profit-taking at the long end of the French curve, which is expensive to OATs. But with German Pfandbriefe looking cheap relative to Laender, the bonds look well supported, bankers said.

Bank of China’s highly anticipated green covered bond launched Thursday, with books growing quickly in the first few hours.

Bank of China's received on Wednesday a provisional rating for its green secured bonds and leads have set initial price thoughts.

The newly established mortgage issuing subsidiary of Nordea Bank has mandated leads to roadshow its first deal from its Finnish programme.

Commonwealth Bank of Australia has announced a self-led multi-tranche Australian dollar covered bond for launch later this week.

A number of covered bond borrowers have this week what has become a rare opportunity to print shorter dated deals than have been possible in recent times. But if they want to beat the uncertainty surrounding the US presidential election next week, they will have to move over the next three days.

German Pfandbriefe have received a boost, according to Moody's from the German finance ministry, which is tightening lending standards in the country's housing market to counteract rising prices caused by the European Central Bank's accommodative monetary policy.

Caja Rural Navarra has mandated leads to roadshow an environmental and social governance (ESG) Cédulas Hipotecarias with an intermediate maturity.