Covered Bonds

Turkey’s Garanti Bank is still looking at the possibility of issuing mortgage backed covered bonds, although the market backdrop has soured since it started. The bank’s board has approved issuance of up to €1bn and a recent rise in spreads could help bring in new accounts, an official told EuroWeek.

Caisse Francaise de Financement Local (Caffil), the new state-owned entity that formerly issued public-sector backed bonds as Dexia Municipal Agency, took advantage of an issuance window early in the week to price its debut Obligation Foncière.

Banco Santander Chile has received the go-ahead from the Chilean regulator to issue what would be the country's first ever covered bond, according to a source at the bank.

Landesbank Hessen-Thueringen (Helaba) seized on concerted demand for five year paper and a solid market opening on Thursday to price a €500m tap of its outstanding 1% June 2018 bond, paying only a few basis points over secondary levels.

Santander’s Chilean arm has received the go-ahead from the country’s regulator to issue what would be Chile’s first covered bond, according to a source at the bank.

Abbey National Treasury Services launched on Tuesday the first bank senior unsecured benchmark bond in Europe since Bank of Ireland’s return to the asset class in late April.

Canadian Imperial Bank of Commerce is set to be the first Canadian bank to issue a deal using the country’s new legislative framework after it mandated banks for what is most likely to be a euro denominated transaction.

Caisse Francaise de Financement Local plans to follow its successfully priced €1bn seven year debut with another benchmark this year.

Caisse Francaise de Financement Local (Caffil) is set to price its debut €1bn seven year Obligation Foncière inside price guidance, after being helped by an improving market backdrop in Europe.

Moody’s has downgraded Banco Popolare Società Cooperativa’s long-term debt rating by three notches, from Baa3 to Ba3, over concerns about the bank’s asset quality. Analysts expect a three notch cut of its covered bond rating to follow.

Garanti Bank is still looking at the possibility of issuing mortgage backed covered bonds, although the market backdrop has soured since it started. The bank’s board has approved issuance of up to €1bn and a recent rise in spreads could help bring in new accounts, an official told EuroWeek Emerging Markets.

Ted Lord, the head of covered bond product at Barclays, is leaving the bank after 21 years to concentrate on interests outside the banking industry.