Covered Bonds

Swedish bank Stadshypotek has mandated leads for its first covered bond backed by Finnish assets. As the bonds are regulated under Swedish law, they should offer a small spread over Finnish legal framework deals which are eligible for the ECB's covered bond purchase programme (CBPP3).

The European Commission could ignore the advice of the European Supervisory Authorities and plough on with its plan to exempt covered bond swaps from collateral posting where the claim is subordinate to investors, bankers say.

The various constituencies of the covered bond market voted quite differently this year and in some cases the final winning margins were close. See how the market voted for this year’s awards.

Korea Housing Finance Corp and Cariparma Crédit Agricole have hired lead managers to arrange investor meetings, with a view to issuing covered bonds in dollars and euros, respectively.

National Bank of Canada (NBC), rarely seen in the covered bond market, issued a seven year deal on Thursday and although it offered virtually no concession, it was highly subscribed.

The Bank of Queensland’s (BoQ) upcoming conditional pass through (CPT) covered bond, the first CPT from an Australian issuer, will mark a major step in the use of the structure, with cross-currency swaps used for the first time.

RLB Oberösterreich issued its first covered bond benchmark this week attracting the widest ever audience for any Austrian covered bond issuer, burying lingering concerns over long term fallout from Heta.

Korea Housing Finance Corp and Cariparma Crédit Agricole have hired lead managers to arrange investor meetings, with a view to issuing covered bonds in dollars and euros, respectively.

National Bank of Canada issued a rare seven year euro covered bond on Thursday and although it offered virtually no concession, it was highly subscribed, despite secondary market profit-taking.

The Cover’s 10th annual covered bond awards took place this year at the Rheinterrace in Düsseldorf on Thursday, September 15.

After a long supply hiatus a number of other Austrian issuers are likely to be considering a deal, following RLB Oberösterreich’s success on Tuesday. Last September, three Austrian issuers came to market in short succession.

National Australia Bank and Credit Suisse have both received the approval of investors to change terms of their existing covered bonds.