Covered Bonds

The European Central Bank has completed its covered bond purchase programme (CBPP), it announced this (Wednesday) morning.

HSH Nordbank yesterday (Monday) priced a Eu500m three year Pfandbrief issue that could well be the last sizeable new issue bought by euro-zone central banks operating under the European Central Bank’s purchase programme, which today (Tuesday) appeared to have passed its targeted Eu60bn. [Amended.]

Yorkshire Building Society is to seek consent from bondholders to drop Standard & Poor’s ratings from its covered bond programme as a result of changes to the rating agency’s swap counterparty criteria.

Achmea Hypotheekbank mortgage covered bonds received their third rating on Friday, when Fitch followed up on a first time rating of the Dutch issuer the previous day.

HSH Nordbank will shortly close books on a Eu500m three year public sector-backed Pfandbrief that was the only sizeable new covered bond in the market this (Monday) morning, with the end of the European Central Bank’s purchase programme injecting some uncertainty into the market.

Proponents of covered bonds are hopeful that legislation could be enacted in the US this year, even though a covered bond amendment failed to make it into the financial reform bill completed last week.

Canadian Imperial Bank of Commerce is set to price its second US dollar benchmark covered bond today (Friday).

Settled purchases under the European Central Bank’s covered bond programme stood at Eu59.549bn this (Friday) morning, but given a time lag between purchases being made and reported, it is possible that the Eu60bn earmarked for the scheme may has already been spent.

National Bank of Greece has set up a second covered bond programme “as part of its strategic planning for optimal use of its balance sheet and development of contingent liquidity”, it said yesterday (Thursday).

Standard & Poor’s today (Friday) downgraded the long term rating of ABN Amro from A+ to A, on stable outlook, in advance of the bank’s merger with Fortis Bank Nederland on 1 July. Fitch on Wednesday said that it expects to affirm ABN Amro’s rating on completion of the merger, but cut the bank's individual rating.