Covered Bonds

The job of BNP Paribas’ covered bond research analyst, Heiko Langer, has been put at risk.

Bank of Nova Scotia (BNS) has issued the largest legislative US dollar denominated covered bond at a considerably tighter spread than the previous two transactions and with a minimal new issue concession.

Toronto Dominion Bank attracted the highest oversubscription level of any Canadian deal issued in euros this year even though it was its fourth foray into the covered bond market in 2016.

Several covered bond issuers have removed the swaps in their covered bond programmes, in the face of onerous regulatory obligations. This has improved their funding efficiency and given investors a less risky, more transparent, and potentially higher yielding product. Others should follow.

Several covered bond issuers have removed the swaps in their covered bond programmes, in the face of onerous regulatory obligations. This has improved their funding efficiency and given investors a less risky, more transparent, and potentially higher yielding product. Others should follow.

Favourable funding conditions should pave the way for an increasing amount of Turkish mortgage backed covered bond supply over the next few months, said Moody’s. Covered bonds will reduce Turkish banks’ asset-liability funding mismatch and help diversify their funding, the agency said.

Bank of Nova Scotia (BNS) has mandated leads for the sixth dollar benchmark of the year and the third from a Canadian bank.

The covered bond market was relatively unaffected by the oil price-induced credit widening on Monday morning and bankers were hopeful that, despite blackout periods, a few issuers would venture into the market this week, potentially including the first Turkish deal from Vakifbank.

Romania’s credit positive covered bond legislation has been undermined by a new mortgage law that allows borrowers to default and retroactively removes a lender's ability to take recourse against a defaulted borrower.

Westpac has confirmed it received the necessary quorum and consent to change the terms of a US dollar benchmark after it was unable to achieve the necessary quorum on the first attempt.

The European Covered Bond Council (ECBC) has appointed DBS's Colin Chen as the chairman of a new global working group for 2016-2019.

The Eurosystem has had the luxury of being able to maintain its covered bond purchasing rate thanks to an active primary market. But with supply set to slow over the second half of April and dealers’ inventories light, the European Central Bank will be obliged to step up purchases in the secondary market, or slow down the overall rate of buying.