Covered Bonds
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Moody’s and Fitch yesterday (Wednesday) said that the takeover of CajaSur by the Spanish authorities has not affected the ratings of either covered bonds issued directly by the savings bank or those it participates in.
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Standard & Poor’s downgraded Bank of America’s covered bonds from AAA to AA, on negative outlook, yesterday (Wednesday) following a review of the programme under the rating agency’s revised criteria, because of insufficient credit enhancement.
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GCE Covered Bonds will price the first covered bond of Eu1bn or more in five weeks this (Thursday) afternoon, a four year issue at 40bp over mid-swaps that one banker described as “a first glimmer of hope”.
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Westdeutsche ImmobilienBank’s mortgage Pfandbriefe were yesterday (Wednesday) affirmed and removed from CreditWatch negative by Standard & Poor’s, but are on negative outlook.
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Anthony Tobin has resigned from HSBC and is understood to be joining Bank of America Merrill Lynch’s syndicate.
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Covered bonds could yet play a part in US financial reform legislation that is shortly to be finalised, despite not having featured in either of the relevant Senate or House of Representatives bills.
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In brief: Credit Suisse has hired Andreas Kraft from Commerzbank to trade covered bonds.
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The European Central Bank yesterday (Monday) reported a Eu10bn increase in purchases under its Securities Markets Programme, and this morning the fifth largest increase in buying under its covered bond purchase programme.
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A decision by the European Commission to allow government guarantee schemes to be extended is not expected to result in an increase in their use given that fees will have to rise for any schemes that continue, and banks that use them could face EC intervention. -
Fitch put CajaSur on Rating Watch Positive yesterday (Monday) after the Banco de España put the Spanish savings bank under the control of the Fund for the Orderly Restructuring of Banks (FROB).
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Banca Popolare di Milano’s covered bonds were affirmed by Fitch on Friday after the issuer told the rating agency that it would take remedial action following a downgrade of its senior rating the previous day.
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The Banco de España has announced that CajaSur is being taken under the control of Spain’s Fund for the Orderly Restructuring of Banks (FROB), after merger discussions with Unicaja ended.
