Covered Bonds

Nordea Bank Finland and Deutsche Pfandbriefbank (pbb) found a surfeit of demand for their five year benchmarks, allowing the former to price the tightest Nordic covered bond since 2008.

UniCredit proved on Thursday that the supportive market backdrop for covered bonds extends to peripheral Europe, though bankers away from the deal said the result did not blow the door open for second tier Italian banks.

Belgian bank KBC seized on the opportunity to get post-summer funding done early, bringing a €750m three year that was well received by investors as it continues to build its covered curve.

Landshypotek closed books on its second largest ever Swedish krona covered bond on Tuesday, with leads pricing Skr4.1bn (€471.8m) of five year fixed and floating rate paper later.

The European Commission has approved an extension and slight increase in the state guarantee for Caisse Centrale du Crédit Immobilier de France, giving authorities extra time to draw up a final plan for the state-rescued bank.

Moody’s has reacted positively to the Reserve Bank of New Zealand’s plans to restrict high loan to value mortgage lending.

The resumption of post-summer covered bond supply continued on Thursday, including the first issue out of peripheral Europe. UniCredit’s €1bn seven year was priced at the tight end of guidance, while Belgian bank KBC also tapped the market for a €750m three year that was well received, confirming the window for issuance remains wide open.

The funding and bank capital markets have roared back into action this week, with senior unsecured and covered bond supply dominated by Nordic and French names, while Société Générale announced the second ever CRD IV-compliant additional tier one trade.

Deutsche Pfandbriefbank priced its fourth covered bond of the year, a no grow €500m five year, only 2bp above its outstanding curve on Wednesday, mimicking the tight pricing in Nordea Bank Finland’s five year trade a day earlier.

Nordea Bank Finland attracted more than €3bn of orders for its five year benchmark on Tuesday morning in what was the first piece of supply from a European issuer since July.

The European Commission has approved an extension and slight increase in the state guarantee for Caisse Centrale du Crédit Immobilier de France, giving authorities extra time to draw up a final plan for the state-rescued bank.

Landshypotek closed books on its second largest Swedish krona covered bond ever on Tuesday, with leads expected to price Skr4.1bn (€471.8m) of five year fixed and floating rate paper later on Tuesday afternoon.