Covered Bonds

The head of group funding at UniCredit, Waleed El Amir, talked exclusively to GlobalCapital about meeting looming regulatory deadlines and the advantages of the covered bond market.

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 concession to healthy levels of subscription.

Next week is likely to be one of the busiest in the fourth quarter in covered bonds, as a string of debut deals emerge, along with the first ever publicly syndicated euro benchmark from Poland.

Almost 72% of noteholders have participated early in the Panamanian covered bond lender’s tender offer.

Including redemptions and central bank buying, the investable eurozone covered bond market has shrunk almost €80bn so far this year. No surprise, then, that three seven year deals issued this week by Ibercaja, Banco Sabadell and Bank of Montreal were swamped with demand.

Maturing deals issued by Washington Mutual and National Bank of Greece show covered bonds doing precisely what they're supposed to — redeem in full and on time.

Including redemptions and central bank buying the investable eurozone covered bond market has shrunk almost €80bn so far this year. No surprise then that seven year deals issued on Thursday by Banco Sabadell and Bank of Montreal were swamped and priced with virtually no concession.

After mandating leads on Wednesday, Bank of Montreal is set to open books on Thursday for what will become the longest Canadian covered bond in euros. Having issued three year and five year deals this year, BMO’s fourth trade of 2016 will be a curve extending seven year.

Maturing deals issued by Washington Mutual and National Bank of Greece show covered bonds doing precisely what they're supposed to — redeem in full and on time.

Covered bond supply on Tuesday hit a pause. A number of issuers are monitoring the market and a second euro benchmark could well be announced later this week. In the meantime, secondary market flows have improved with buyers of New Zealand and French bonds noted.

On Monday Spain's Ibercaja returned to the covered bond market for the first time since 2010 to issue the tightest Spanish deal this year. Although the book contained fewer orders than many Spanish covered bonds, the scale of excess demand was above average.

We would like to know what you think of The Cover’s new home and ask that you complete a small survey. It will only take five minutes and should help us to improve the service.