Covered Bonds

Crédit Agricole's rare €500m 10 year public sector Obligations Foncieres was priced at the tightest spread for a French covered bond in more than a year and it was the most highly subscribed in more than 18 months.

The rate of the European Central Bank's covered bond purchases slowed again in the latest reporting period, reflecting a scarcity of secondary market offers and a lack of new supply rather than a deliberate attempt to taper.

Hypo Oberösterreich’s first transaction issued from its newly set up covered bond programme was exceptionally well received, despite its small size and lower than average rating.

The debut covered bond of BNP Paribas Fortis and the first in four years from SNS Bank were priced on Monday with virtually no new issue concessions and healthy levels of subscription.

Polish banks will be anxious to follow PKO Bank Hipoteczny which on Monday enjoyed a superb reception for its euro benchmark covered bond — the first from the country. Bill Thornhill reports.

The Austrian lender’s first transaction issued off its newly set up covered bond programme was exceptionally well received, despite its small size and lower than average rating.

The Irish and Luxembourg subsidiaries of Depfa Bank confirmed that they bought a combined €4.8bn covered bonds from FMS Wertmanagement (FMS-WM) which will be cancelled with the underlying assets sold back to the state-owned wind down agency, of which it is a wholly owned subsidiary.

The rate of the European Central Bank's covered bond purchases slowed again in the latest reporting period reflecting a scarcity of secondary market offers and a lack of new supply rather than a deliberate attempt to taper.

Berlin Hyp issued a €175m tap on Wednesday after it emerged that Crédit Agricole would not be proceeding with its previously announced 10 year. Meanwhile, Hypo Oberoesterreich signalled its intention to press ahead with its debut covered bond.

Crédit Agricole has mandated leads for a rare public sector-backed €500m 10 year Obligations Foncieres.

Panamanian lender Global Bank saw its new five year bonds trade up 50 cents on Friday as an improved credit profile allows the bank to buy back covered bonds using senior unsecured debt.

The Polish national champion successfully issued its first euro denominated covered bond benchmark on Monday, and the first publicly syndicated deal ever issued by a Polish bank in the euro market.