Covered Bonds

German and Austrian covered bond issuers are expected to benefit if the Austrian government’s most recent offer for partial repayment of Heta Asset Resolution’s senior and subordinated debt is accepted by its creditors. Despite the more positive outlook, the loss of trust may take years to repair and for the time being Austrian covered bonds are unloved.

DBS Bank in Singapore this week issued its first deal in Australian dollars, the first covered bond from an Asian lender and the first benchmark sized Kangaroo covered bond of the year.

Delta Lloyd has announced a prime RMBS that is fully backed by Nationale Hypotheek Garantie (NHG) mortgage loans. Although these loans are less risky, the supply of them may fall due to new European regulations, said analysts at Rabobank.

TwentyFour Asset Management’s listed closed-ended UK Mortgages Limited fund muscled in on the UK RMBS market on Wednesday with a debut securitization of buy-to-let mortgages.

CBIC has responded to the European Commission’s consultation on covered bonds with a host of recommendations on transparency. It has requested further improvements to the European Covered Bond Council’s Harmonised Transparency Template (HTT).

DBS Bank issued its first benchmark covered bond in Australian dollars and the first from an Asian issuer on Wednesday. The A$750m three year attracted a deep and broad book of demand, sending a positive signal for other potential Aussie dollar covered bond issuers.

The European Central Bank has stepped back covered bond purchases despite much higher supply so far this year compared to last.

NIBC Bank issued the longest ever maturing conditional pass-through (CPT) covered bond from a bank in Europe’s core on Tuesday. The granular order book and modest new issue concession suggested that market conditions have stayed strong.

Dutch issuer Obvion is launching the world’s first green RMBS deal, backed by a €271m portfolio of loans on prime energy efficient homes.

NIBC has mandated leads for a 10 year conditional pass through covered bond (CPT), the longest ever seen from a Dutch bank. The issuer follows Aegon Bank which last week saw exceptionally strong demand for its €500m seven year.

Bank of New Zealand has mandated leads to roadshow its first euro benchmark in four years. It joins Westpac New Zealand and SR Boligkreditt which are also marketing deals.

UK banks Santander and TSB issued prime RMBS on Thursday and Friday last week, respectively. Meanwhile, UK Mortgages Limited has announced a third RMBS backed by mortgages originated by Coventry Building Society.