Covered Bonds

The rally in sterling covered bonds still has some way to go. With another UK rate cut likely and negligible supply, spreads should at least halve in the next few months.

The rally in sterling covered bonds still has some way to go. With another UK rate cut and limited supply, spreads should halve in the next few months.

Next week’s Danish covered bond auctions are eagerly awaited by yield-starved foreign investors. The 30 year callable notes offer the highest yields for a triple-A rated credit to be found anywhere.

With new issue premiums set to rise and spreads prone to soften, the covered bond market could be set for a repeat of last year’s spread widening. But this time supply is more limited, and any move wider won't last.

HSH Portfoliomanagement, a wind-down agency for non-performing ship financing loans from HSH Nordbank, has hired banks to run a roadshow that could be followed by a debut syndication.

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.