Covered Bonds
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Two new French covered bond programmes are being planned by existing issuers, with one turning to obligations foncières for the first time and the other looking to issue obligations à l’habitat.
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Standard & Poor’s has affirmed the AAA ratings of a further four covered bond programmes under its new rating methodology. The programmes are those of DekaBank Deutsche Girozentrale, NRW.Bank, DnB Nor Boligkreditt, and BNP Paribas Public Sector Société de Crédit Foncier.
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Primary market activity was on hold today (Monday), with market participants awaiting the outcome of a meeting of euro-zone finance ministers this afternoon in the hope that it will provide some clarity on the direction the Greece debt crisis could take and, by association, the prospects for new issuance.
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The European Central Bank reported Eu1.337bn of settled purchases under its covered bond programme this week, maintaining a steady pace for a third week in the face of volatile markets. -
Crédit Mutuel-CIC priced the third benchmark covered bond of the week yesterday (Thursday) afternoon, but with the European Union’s statement in support of Greece having failed to calm nerves, the two day burst of activity could prove to have marked the eye of the storm, rather than its end.
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Crédit Mutuel-CIC this (Thursday) morning launched its second benchmark in just over a month, marketing a seven year transaction that follows a five year deal sold on 7 January.
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Caisse de Refinancement de l’Habitat sold a Eu1.2bn 10 year covered bond yesterday (Wednesday), taking advantage of a back-up in yields prompted by an easing of the Greek crisis.
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Standard & Poor’s has revised the outlook on Dexia Crédit Local’s A rating from stable to negative because it expects the institution’s funding costs to rise over the next two years as it will no longer benefit from a government guarantee for any new debt issues.
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Eurohypo yesterday (Wednesday) priced its first jumbo Pfandbrief of the year, a Eu1.5bn three year deal that tapped a maturity the issuer had not used for a new benchmark since before the onset of the financial crisis.
