Covered Bonds

Compagnie de Financement Foncier yesterday (Wednesday) priced a Eu1bn five year obligations foncières issue at 57bp over mid-swaps, in line with guidance of the high 50s over area, via leads Commerzbank, Deutsche Bank, HSBC and Natixis.

ABN Amro sold a Eu1.25bn seven year transaction yesterday (Wednesday), which leads ABN, BNP Paribas, Crédit Agricole and DZ Bank priced at 70bp over mid-swaps.

The iTraxx senior financials is trading wider ahead of the release of the EC’s latest draft consultation paper, which is likely to confirm suspicions that an EU wide initiative on bank bail-ins is going to be hard-coded into regulation.

GCE Covered Bonds has closed books on a Eu1.25b four year transaction, which leads Crédit Agricole, ING, Natixis and UniCredit priced at 60bp over mid-swaps, the middle of guidance.

Santander priced what was possibly one of the more challenging deals of the week, a Eu1bn five year via leads Barclays Capital, Citgroup, Goldman Sachs, LBBW and Santander.

Crédit Agricole yesterday (Wednesday) priced a Eu1.5bn 10-year covered bond at the tight end of initial guidance at mid swaps 73bp via leads Crédit Agricole, Deutsche Bank, ING, Natixis and Santander.

UniCredit sold a Eu1bn public sector Pfandbrief yesterday (Wednesday), which leads Commerzbank, Natixis, NordLB, RBS and UniCredit priced at mid-swaps flat, after going out with guidance of the 2bp over area.

DnB Nor Boligkreditt came to market yesterday (Tuesday) with a Eu2bn five year transaction, which leads Barclays Capital, Citibank, Goldman Sachs and HSBC priced at 32bp over mid swaps, in line with guidance of the low 30s area.

Spain's Banco Bilbao Vizcaya Argentaria SA yesterday successfully priced the first Spanish covered bond since early November when Caja Madrid tapped the market. It was therefore “important they make sure that they did so in a preferable way,” a syndicate official at one of the leads explained.

BNP Paribas home loan bank attracted over 100 accounts to participate in a Eu1.75bn 10 year issue yesterday (Tuesday), which leads BNP, Natixis, RBS and UniCredit priced at 65bp over mid swaps.

Primary issuance continues to power ahead with five deals pricing yesterday and a further five deals expected to price this afternoon. Several more have been announced but, in a possible sign of things to come, two have been postponed and there is speculation that another is struggling.

ING sold a Eu1.25bn seven year transaction yesterday (Tuesday), which priced at 60bp over mid-swaps, in line with guidance, via leads Barclays, ING, Natixis and UniCredit.