Covered Bonds

Banca Carige will price a Eu1bn seven year debut benchmark covered bond this (Wednesday) afternoon at a level that met with a strong response from investors even though some were left with disappointed expectations.

Dexia Lettres de Gage Banque today (Wednesday) priced its inaugural public covered bond, a Eu500m three year issue, at the tight end of guidance off the back of an easily oversubscribed order book.

Total settled covered bond purchases under the European Central Bank’s programme reached Eu20.237bn this (Tuesday) morning off the back of a Eu489m increase, the biggest rise in three weeks.

Banca Carige is likely to set the maturity of its debut benchmark covered bond at seven years, according to market participants. Meanwhile, a Spanish name is said to be looking closely at the market with the possibility of an imminent deal and Dexia’s Luxembourg registered arm is aiming to settle some unfinished business.

Goldman Sachs has hired Eldar Mezbur from Barclays Capital as head of covered bonds with responsibility for marketing and origination.

UniCredit yesterday (Monday) priced a Eu1bn long 12 year deal that is only the fifth Italian benchmark covered bond, and the first this year to come with a maturity other than seven years. The issuer told The Cover that the transaction was intended to expand the obbligazioni bancarie garantite yield curve and thereby facilitate the positioning of Italian covered bonds.

The European Central Bank reported a Eu443m increase in total settled covered bond purchases this (Monday) morning, taking spending under the scheme to Eu1.653bn ahead of an assumed target spending path.

UniCredit will today (Monday) price a Eu1bn long 12 year obbligazioni bancarie garantite issue at 60bp over mid-swaps, a level that one syndicate banker suggested would have been difficult to achieve a week ago before market conditions took a turn for the better.

Fitch has today (Monday) affirmed Bank of Ireland’s mortgage covered bonds at AAA after improving their Discontinuity Factor to reflect changes to the issuer’s UK programme that mean all covered bonds executed off it now feature an extendable maturity.

Christoph Anhamm has been promoted to become head of covered bond origination at Royal Bank of Scotland.

A Eu434m increase reported today (Friday) ended the longest run of below average spending under the European Central Bank’s Eu60bn programme.

Benchmark covered bond supply could have a strongly Italian flavour next week, with two obbligazioni bancarie garantite likely to emerge in the coming days. Meanwhile an Irish issuer is making preparations ahead of a possible inaugural public deal in the medium term.