Covered Bonds

Moody’s yesterday (Thursday) placed on review for possible downgrade the bank financial strength rating and long term issuer rating of BNP Paribas.

Moody’s yesterday (Thursday) placed on review for possible downgrade the long term ratings of Bank of Montreal, citing pressure on the issuer’s profitability.

Moody’s yesterday (Thursday) placed SNS Bank’s long term rating on review for possible downgrade. It affirmed NIBC’s ratings, but revised the outlook on Fortis Bank Nederland’s rating from positive to negative.

The European Central Bank this (Thursday) morning reported a Eu233m increase in settled covered bond purchases that narrowly misses breaking a run of below average spending under the programme.

Norges Bank is planning to reverse temporary changes to its collateral requirements and tighten them beyond those that existed before they were eased, it announced today (Thursday). From February 2012 the Norwegian central bank will no longer accept bank securities as collateral, but covered bonds will remain eligible.

Reported buying under the European Central Bank’s covered bond programme rose to Eu18.638bn this (Wednesday) morning on the back of a Eu207m increase in settled purchases.

SNS Bank told The Cover that it was unfazed by DSB Bank’s failure and Eurohypo’s wider than expected pricing on Monday when it launched its first benchmark covered bond yesterday (Tuesday), a Eu1bn six year deal executed around two years after its programme was established.

Eurohypo yesterday (Monday) priced its fourth and tightest mortgage-backed benchmark this year, a Eu1bn long five year jumbo sold at 25bp over mid-swaps. The issuer told The Cover that a sounding exercise on Friday served its intended purpose of price discovery given that it has no crystal ball.

The European Central Bank reported an increase of Eu132m in settled covered bond purchases under its programme this (Tuesday) morning, extending its run of below average buying into a record fifth consecutive day.

SNS Bank has closed the books for its debut benchmark covered bond having attracted around Eu1.5bn of orders for a six year issue. The deal will be priced in the middle of guidance this (Tuesday) afternoon, but the final size had yet to be confirmed by the time The Cover went to press.