Covered Bonds

Polish banks, hoping to take advantage of the new covered bond law which came into effect this year will need to work hard to overcome investor concerns regarding their Swiss mortgage loan exposures, which Moody’s said would significantly undermine investor confidence.

Van Lanschot Bankiers announced its intention to proceed with a conditional pass through deal on Tuesday and, following Credit Agricole’s recent 15 year, and a string of well performing peripheral deals, another opportunistic issuer could be tempted to move at short notice with a deal at the long end of the curve.

Coventry Building Society's newly issued Godiva Mortgages RMBS offered almost three times the spread of its sterling covered bonds.

Natixis has appointed its new global head of debt capital markets for financial institutions.

Crédit Agricole issued the biggest euro covered bond benchmark since 2007 this week, achieving a competitive cost of term funding at historically cheap rates. Apart from the ECB’s new stimulus measures which helped demand, the deal size was somewhat enlarged by the bank’s recent tender according to Nadine Fedon, CEO of Crédit Agricole Home Loan SFH.

Two or three covered bonds could surface in the first half of next week, but with holidays in Scandinavia and Spain on Thursday and Friday, most issuers are looking to the start of the new quarter where they hope to take advantage of the fresh money that is expected to be put to work.

The head of covered bonds origination has left RBC Capital Market

Intesa SanPaolo captured the robust improvement in peripheral market sentiment following the European Central Bank’s meeting last week with its €1.25bn seven year.

Landesbank Hessen-Thüringen Girozentrale (Helaba) and WL Bank met contrasting outcomes for their euro denominated German Pfandbriefe issued this week.

Two borrowers from Denmark and Norway launched their first euro denominated covered bonds this week, expanding the number of issuers to a new record.

Crédit Agricole raised €3.25bn as it issued the biggest euro covered bond benchmark since 2007 on Wednesday, achieving a competitive cost of term funding at historically cheap rates.

UK covered bonds have not tightened alongside covered bonds from other jurisdictions in recent weeks, but they have not yet seen any real selling either. While it seems likely the UK market would be sold following a potential Brexit, this should provide a buying opportunity given that the market should not widen any further than Canada.