Covered Bonds

Landesbank Hessen-Thüringen (Helaba) is expected to price the third dollar Pfandbrief of the year at the tight end of guidance and inside the level it could have achieved in euros.

A lingering aversion to negative yielding covered bonds has caused a slight spread inversion in the Pfandbrief curve and caused supply to move longer. And with concerns over a potential repricing of the market mounting, higher yielding non-Eurozone bonds should offer the least execution risk.

Over 650 people have already voted in The Cover’s 2016 annual awards survey — GlobalCapital's awards for the covered bond market — and polls are set to close imminently. Be sure not to miss the chance to make your opinion count in what is proving to be a close contest.

In the 1983 blockbuster movie TV meteorologist Phil Connors gets caught in a time loop. With new issue premiums set to rise and spreads prone to soften, the covered bond market could also be set for a repeat of last year, say bank traders, and analysts at Crédit Agricole.

FMS Wertmanagement (FMS-WM) has bought most of the outstanding covered bonds issued by the Irish and Luxembourg subsidiaries of the Depfa Group and could soon remove their ratings.

BayernLB successfully issued a $300m Pfandbrief at a tighter spread than it would have gotten in euros, with a highly oversubscribed book.

BBVA has set up the first Cédulas de Internacionalización (CI) programme, a new type of covered bond asset class that is secured purely against export finance loans.

The list of Norwegian covered bond debuts continues to grow with Moody’s assigning a top rating to OBOS Boligkreditt, the largest housing and real estate developer in Norway. The agency now rates 18 Norwegian covered bond programmes in this nation of five million people.

Four years after Spain approved a new legal framework to support funding of export finance loans, BBVA has set up the first covered bond programme to be backed by the loans, which Moody’s rated on Wednesday. And with Spain set to update its Cédulas Hipotecarias law, others may be obliged to follow.

BayernLB successfully issued a $300m Pfandbrief at a tighter spread than it could have achieved in euros. It follows a privately placed sterling Obbligazioni Bancarie Garantite (OBG) issued by Banca Popolare dell'Emilia Romagna (BPER).

FMS Wertmanagement (FMS-WM) has bought most covered bonds issued by the Irish and Luxembourg subsidiaries of the DEPFA Group and should soon remove their Aa2 rating.

July’s pitifully low covered bond supply should be easy to beat. Given that the market is likely to remain receptive and issuers will not want to compete for attention when the market properly reopens in September, August should be busier.