Covered Bonds
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Standard & Poor’s has affirmed the AAA ratings of public sector covered bonds issued by Eurohypo and DZ Bank under its revised rating criteria. Eurohypo’s Pfandbriefe are on negative outlook.
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La Caixa and Banco Bilbao Vizcaya Argentaria this (Monday) morning accessed the covered bond market after Santander reopened the cédulas sector last Thursday, with market participants cautiously constructive about the prospects for yet more Spanish issuance. Meanwhile, Swedish Covered Bond Corp has announced plans to tap the market.
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Republican Bob Corker has offered a covered bond amendment to the Dodd Bill ahead of a possible vote on the financial reform legislation by the Senate Banking Committee today (Monday). However, reports suggest that it could be withdrawn, alongside all Republican amendments.
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Standard & Poor’s has revised the outlook on OTP Mortgage Bank from negative to stable because the issuer has shown better resilience to Hungary’s recession than the rating agency had expected.
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Three Spanish banks are said to be looking to raise funding in the covered bond market after Santander reopened the cédulas sector yesterday (Thursday).
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The European Central Bank this week reported a moderate Eu1.106bn of covered bond purchases, with no eligible benchmark issuance settling in the relevant period. -
Republican congressman Scott Garrett introduced the United States Covered Bond Act of 2010 yesterday (Thursday), which builds on his previous efforts to create a legislative framework for the asset class in the US.
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Fitch yesterday (Thursday) affirmed National Bank of Greece’s covered bonds at AA, removed them from Rating Watch Negative, and rated a further series off the issuer’s Eu10bn programme.
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Santander launched the first Spanish benchmark covered bond in two months this (Thursday) morning, a Eu1bn seven year cédulas hipotecarias transaction that market participants said could lay a foundation for further issuance from the country. Already, a follow-up has been mandated.
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New legislation aimed at creating a covered bond framework in the US is set to be introduced today (Thursday).
