Covered Bonds
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OP Mortgage Bank built the biggest order book of this week’s deals for a Eu1.25bn five year benchmark that was priced at 40bp over mid-swaps yesterday (Thursday). The issuer told The Cover that it usually comes to the market in the spring, but that this year it paid off to postpone its transaction.
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In brief: Ibercaja is expected to launch its first benchmark covered bond early next week, while Caja de Ahorros de Murcia has mandated leads for a new issue.
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EBS Building Society yesterday (Thursday) placed its first unguaranteed bond since the Irish government guarantee scheme was introduced in September 2008, via a Eu1bn three year benchmark covered bond sold by its subsidiary, EBS Mortgage Finance. The issuer told The Cover that it is delighted to have overcome the challenges it faced in making its public debut and is looking forward to building on it for the future.
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The Cover understands that Nick Morgan has left RBC, where he was a managing director in the financial institutions origination team.
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SEB’s mortgage and public sector Pfandbriefe have been downgraded by Moody’s from Aaa to Aa1 and left on review for further downgrade, although the rating agency said that the issuer has plans to secure the new ratings.
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The European Central Bank, the UK’s Financial Services Authority and De Nederlandsche Bank (DNB) organised an informal seminar for regulators and supervisors on Regulated Covered Bonds in Amsterdam last Thursday and Friday to discuss Regulated Covered Bonds and broader issues relating to this asset class.
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Representatives of the Norwegian and Swiss central banks have discussed how covered bond measures introduced during the crisis eased the funding pressures facing banks in the two countries.
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Buying reported under the European Central Bank’s Eu60bn covered bond programme totalled Eu809m this week, making it the second quietest full week since purchases began. -
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Barclays Bank has issued six series of covered bonds off a new programme backed by loans to local authorities in the UK in the first deal of its type in the country.
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EBS Mortgage Finance is taking orders for a Eu1bn three year mortgage-backed benchmark at the 175bp over mid-swaps area today (Thursday), while OP Mortgage Bank was this morning twice oversubscribed on a Eu1.25bn five year.
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Kommunalkredit Austria has informed Moody’s that it plans to provide enough overcollateralisation for its public sector covered bonds to preserve their Aaa rating.
