Covered Bonds

Borrowers could decide to switch senior projects into covered trades, syndicate bankers told The Cover. This would follow the example Nordea set in April when it turned a planned senior deal into a blow out seven year covered deal.

The European Commission’s bid to improve pre trade and post trade price transparency through regulation is counterproductive, the European Covered Bond Council believes. It has responded to EC proposals for regulation on markets in financial instruments (MiFiR), and a related draft report from the European Parliament on pre and post-trade price transparency.

The radio silence surrounding the suspension in 3CIF bonds this week is a textbook case of How Not To Do Investor Relations.

AIB has raised the first unguaranteed funding for an Irish institution since 2009 through its Tenterden RMBS. The securitisation structure was developed precisely to deal with these challenging situations and rests on the effective de-linkage of collateral from sponsor. Just as de-linkage can be abused, it also serves as a major strength. And having come through the crisis the other side, the RMBS market is now in a stronger place. With the EBA recognising the need to grow the securitisation market it can only be a matter of time before it sits alongside covered bonds in the suite of wholesale mortgage funding options.

This week’s shocking suspension of Caisse Centrale du Crédit Immobilier de France’s covered bonds from Euronext and the Luxembourg stock exchange has left capital market participants bewildered and angry.

The risk profile of Danish agricultural loans is putting pressure on the country’s borrowers and their covered bonds, Moody’s said on Wednesday. Standard & Poor’s added to the gloom, reporting that Danish banks were vulnerable to a rise in interest rates, which would be particularly painful for the agricultural sector and could hamper the banking system’s recovery.

This week’s shocking suspension of Caisse Centrale du Crédit Immobilier de France’s covered bonds from Euronext and the Luxembourg stock exchange has left capital market participants bewildered and angry.

Core and non-Eurozone covered bond supply remains in high demand, with France’s Caisse de Refinancement de l’Habitat the most likely candidate to slake investors thirst for issuance.

Covered bond legislation was introduced into the New Zealand parliament on Thursday. The new law, which should be in place by the end of this year, will establish a register for covered bond programmes and require an independent cover pool monitor.

Covered bond legislation was introduced into the New Zealand parliament on Thursday. The new law, which should be in place by the end of this year, will establish a register for covered bond programmes and require an independent cover pool monitor, The Cover understands.

France’s Caisse de Refinancement de l'Habitat has held back its possible deal after the market weakened and uncertainty continued over the trading suspension of CIF Euromortgage’s covered bonds. As parent company 3CIF’s silence over the suspension stretched into its third day, one banker told The Cover the lack of communications with investors was “a disaster”.

Suspension of trading in 3CIF bonds has led to speculation that the borrower, which faces imminent multi-notch downgrades from Moody’s, has wholesale funding difficulties. It could now be forced to merge with another larger entity, such as Banque Postale, bankers told The Cover.