Covered Bonds

BBVA and Santander’s respective three and five year cédulas deals are offered in the Street with no bid, making the task of other Spanish issuers looking to tap the market that much more challenging.

Norddeutsche Landesbank today (Monday) launched a Eu1bn no grow 10 year Pfandbrief, which leads Barclays Capital, BayernLB, Natixis, NordLB and UniCredit will price at 20bp over mid swaps, the middle of guidance.

Caisse de Refinancement de l’Habitat became the fifth French issuer of the new year to price a benchmark covered bond yesterday (Thursday), having originally planned to print next week according to a syndicate official at one of the leads.

Nationwide building society has amended its Eu45bn euro covered bond programme to allow the issuance of Namensschuldverschreibung, registered bonds issued under German law.

Lloyds TSB today priced a Eu750m 12-year UK covered bond as much as 10bp outside initial guidance at mid swaps plus 150bp –yielding a juicy 4.875%, via joint leads Lloyds TSB, Natixis, UBS and UniCredit.

Royal Bank of Scotland launched a Eu1bn seven year transaction that leads BNP Paribas, ING, RBS and UBS priced at 125bp, the middle of guidance.

The covered bond market has experienced its busiest ever week with as many as 15 deals pricing, giving a grand total of about Eu19bn over the holiday shortened week.

ING and ABN Amro were the first Dutch names to come to market in the new year. On Tuesday ING sold a Eu1.25bn seven year transaction, which was priced at 60bp over mid-swaps, the middle of guidance, via leads Barclays, ING, Natixis and UniCredit.

A regulatory boost over bail-ins and banks’ hunger for liquidity drove the covered bond market to new supply records this week and raised fears of pushback from the product’s limited investor base.

The covered bond market leapt back into life this week with a sparkling array of deals that may set the tone for the sector in the year ahead.

Barclays Bank yesterday (Wednesday) priced a Eu1bn 10-year via joint leads Barclays Capital, Commerzebank, Danske, Lloyds TSB, Natixis and Santander. Books opened at 10am on Wednesday before closing just three and a half hours later with an oversubscription of 1.3 times.