Covered Bonds

Banco Popular Español achieved a high hit rate on an exchange offer that was completed on Monday, with around Eu1.4bn of the Eu3.5bn of bonds eligible for the exercise being swapped into a new Eu1.75bn five year cédulas hipotecarias issue — the maximum that the Spanish bank could raise.

Credit Suisse is close to launching the first issue off a new covered bond programme, which would make it the second Swiss bank to issue a standalone covered bond and the second outside the country’s Pfandbrief Act.

Fitch has improved the Discontinuity Factor assigned to obligations foncières issued by Société Générale SCF because it is satisfied that the issuer could in its own name enter into repo transactions with the European Central Bank in the event of a default of its parent.

The covered bond market is standing on its own two feet after the end of the European Central Bank’s purchase programme, Roberto Schiavi, head of investment division, directorate general market operations at the ECB, told delegates at the ECBC/Euromoney covered bond conference last week. However, he said that he feared a blurring of what counts as a covered bond, an issue also addressed by the ECB in a report yesterday (Wednesday).

EuroWeek and The Cover, in association with Barclays Capital and Goldman Sachs, sought out the views of leading issuers, investors and Congressman Scott Garrett to discuss the US dollar covered bond market’s potential with respect to domestic and foreign issuers, as well as legislative and regulatory issues facing the asset class in the US.

Moody’s upgraded Bradford & Bingley’s senior unsecured rating from A2 to Aa3, on stable outlook, yesterday (Tuesday), after an analysis of government guarantee and liquidity arrangements.

Münchener Hypothekenbank sold a Eu1bn three year Pfandbrief yesterday (Tuesday) that the issuer said benefitted from being in jumbo format and enjoyed a high turnout from Asian investors.

France’s senate will tomorrow (Thursday) debate a draft law on banking and financial regulation that includes a proposal to introduce obligations à l’habitat, a new type of French legislative covered bond.

A selection of pictures from the European Covered Bond Council/Euromoney Covered Bond Congress at the Hallenstadion in Zurich on 23 September.

Banco Popular Español achieved a high hit rate on an exchange offer that was completed yesterday (Monday), with around Eu1.4bn of Eu3.5bn of bonds eligible for the exercise being swapped into a new, Eu1.75bn five year cédulas hipotecarias issue – the maximum that the Spanish bank could raise.

A resurgence of US targeted benchmark covered bond supply this year was welcomed by issuers and investors at the ECBC/Euromoney Covered Bond Congress in Zurich last week, with the buy-side airing a series of recommendations as to how the market could expand.

Münchener Hypothekenbank attracted strong demand for a Eu1bn three year public sector Pfandbrief launched today (Tuesday) despite it coming at the tightest level for a sizeable new covered bond since August 2008. Meanwhile, the UK’s Abbey National Treasury Services yesterday sold its third and biggest benchmark of the year.