Covered Bonds

UniCredit’s German subsidiary HypoVereinsbank (HVB) priced a well oversubscribed four year mortgage covered bond this week in the wake of CIBC's strong reception in the three year tenor.

The covered bond market experienced a surge in supply this week, confounding expectations, and illustrating how important it is for issuers to seize unusual funding opportunities.

Italian issuer Mediobanca launched a €250m tap of its existing 2025 covered bond on Thursday, with the deal offering a small premium to its secondary curve. The increase follows news that the Italian bank acquired €2.9bn mortgages from Barclays suggesting it will become a more frequent issuer.

Royal Bank of Scotland has placed its head of covered bond origination at risk of redundancy.

Tim Skeet, head of covered bond origination, has been put at risk of redundancy at Royal Bank of Scotland.

Intesa attracted a well oversubscribed book for its €1.25bn 10 year covered bond issued on Wednesday. The transaction did not initially seem to be an obvious trade to do, but the 1.5% yield along with its status as a national champion evidently gave a broad range of investors exactly the right incentives to take part.

Activity in the covered bond market had been expected to slow down but instead it has been surprisingly busy this week, with as many as three euro benchmarks surfacing over the first three days.

The covered bond market experienced a surge in supply this week, confounding expectations, and illustrating how important it is for issuers to seize unusual funding opportunities.

The covered bond market experienced a surge in supply this week, confounding expectations, and illustrating how important it is for issuers to seize unusual funding opportunities.

UniCredit’s German subsidiary HypoVereinsbank (HVB) priced a well oversubscribed four year Hypothekenpfandbrief on Tuesday. Following a strong reception for CIBC’s three year on Monday, it’s likely other issuers will be looking to take advantage of the surprisingly strong funding window that has followed last week’s European Central Bank meeting.

Canadian Imperial Bank of Commerce (CIBC) has printed a 10 year note on Monday, its first Swiss franc covered bond since 2012, and its fifth currency in covered bonds this year.

Nomura’s Lorenz Altenburg is set to join CaixaBank in January, where he will head the firm’s fixed income syndicate in its recently established Corporate & Institutional Banking (CIB) division.