Covered Bonds

The Canadian government is planning to introduce covered bond legislation, according to the 2010 budget published yesterday (Thursday). [Updates yesterday’s news alert to include reaction.]

The European Central Bank will make available for lending the portfolio of covered bonds it has acquired under its Eu60bn purchase programme, it announced yesterday (Thursday) afternoon.

SNS Bank was in no rush to launch a Eu1bn seven year deal that was priced on Wednesday, an official at the Dutch bank told The Cover, and the extra time it gave investors paved the way for a successful outcome.

EFG Eurobank Ergasias has finalised a Eu5bn covered bond programme, and will on Monday launch a Eu500m five year issue that will initially be retained, a funding official at the Greek bank told The Cover.

Moody’s has downgraded Deutsche Bank’s long term senior debt rating from Aa1 to Aa3.

Standard & Poor’s has updated its Covered Bond Monitor, the tool that is intended to allow issuers to follow the calculations S&P makes to determine target credit enhancement, typically provided by overcollateralisation, that covered bond programmes need to maintain or achieve a targeted rating.

The Canadian government is planning to introduce covered bond legislation, according to the 2010 budget published today (Thursday).

These charts and tables provide an overview of all benchmark covered bond issuance in January-February 2010, breaking down total supply by country and maturity, and comparing this year's volumes with those of previous months and years.

These charts and tables provide an overview of covered bond issuance in January-February 2010, breaking down total supply by country, currency, and maturity, and comparing this year's volumes with those of previous months and years.

Five Greek banks have been put on review for downgrade by Moody’s, including covered bond issuers Alpha Bank and National Bank of Greece.

The European Covered Bond Council sent out a consultation paper on post-trade price transparency this (Thursday) morning, noting that it is considered an “urgent topic” by the European Central Bank and that an industry-led solution would be preferable to one imposed by the European Commission.

SNS Bank opted for a Eu1bn size for a seven year covered bond launched yesterday (Wednesday) to ensure a good performance, said a syndicate official at one of its leads, although the size and quality of the order book would have allowed for a larger deal. Meanwhile, Aktia Real Estate Mortgage Bank hit the tight end of guidance but nevertheless paid a premium for the issue’s Eu500m size.