Covered Bonds
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Abbey National Treasury Services today (Monday) launched a seven year covered bond that is the euro benchmark market’s first new issue since fellow UK issuer Lloyds TSB Bank sold a Eu2bn 10 year deal last Wednesday. Meanwhile, Banco Popular Español has completed an exchange offer and the first jumbo Pfandbrief since June is being prepared.
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Moody’s downgraded mortgaged backed covered bonds issued by Anglo Irish Bank and Anglo Irish Mortgage Bank from Aa2 to A2, on review for possible downgrade, today (Monday), because of a cut to Anglo Irish’s senior unsecured rating.
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Leef Dierks is understood to be joining Morgan Stanley from Barclays Capital.
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Standard & Poor’s, under its revised covered bond rating methodology, on Friday affirmed at AAA and removed from negative review mortgage bonds and covered bonds issued by Realkredit Danmark. Six programmes remain on review under S&P’s updated methodology.
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Sweden’s Stadshypotek priced a $1.6bn two tranche three year 144A issue yesterday (Thursday), becoming the first Nordic issuer to sell a covered bond into the US.
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EuroWeek and The Cover held the fourth annual Covered Bond Awards Dinner at the Dolder Grand, Zurich yesterday (Thursday) evening. These are the winners – including three who were not announced last night – with the results based on a poll of issuers, lead managers and investors conducted last month.
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Lloyds TSB Bank on Wednesday priced the largest UK covered bond since the onset of the financial crisis, taking advantage of demand for UK names as well as investors’ search for yield, which the Netherlands’ SNS Bank had targeted with a 10 year deal on Tuesday.
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The European Covered Bond Council has confirmed a new line-up for its steering committee, following its plenary in Zurich yesterday (Wednesday).
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In brief: Stadshypotek, a subsidiary of Svenska Handelsbanken, is in the 144A market with a debut dollar benchmark.
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Panellists at a European Covered Bond Council plenary in Zurich yesterday (Wednesday) welcomed improved treatment of covered bonds in updated Basel III and Solvency II regulatory frameworks for the banking and insurance sectors, respectively, but warned against a “one size fits all” approach and possible negative effects of new regulation.
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Lloyds TSB Bank is understood to have attracted more than Eu3bn of demand for a 10 year covered bond this (Wednesday) morning, demonstrating strong support for the long end and UK names. The issue comes after SNS Bank sold a Eu1bn 10 year yesterday (Tuesday), with the issuer citing yield levels as a key factor in its execution.