Covered Bonds

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.

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.

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.

Leef Dierks is understood to be joining Morgan Stanley from Barclays Capital.

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.