Covered Bonds

Eurohypo launched a Eu1bn long five year mortgage-backed Pfandbrief this (Monday) morning that will be priced at 25bp over mid-swaps, the middle of guidance that was set wider than initial levels investors were presented with on Friday. Only one issuer is widely expected to follow it into the primary market this week.

An additional Eu164m of settled covered bond purchases were reported this (Monday) morning, kicking off a week when five new benchmarks eligible for the ECB’s scheme totalling Eu5bn close. Meanwhile a member of the ECB’s governing council on Friday said that the size of the programme was chosen so as not to dominate the market.

Eurohypo is preparing to launch a long five year mortgage Pfandbrief issue that is being sounded in the low 20s over mid-swaps area, although not everyone is yet convinced of the level.

This week The Cover's very own auteur, Jean-Luc Covered, goes all Stanley Kubrick, with self-sacrifice on the trading floor, a murderous auction system, and an apocalyptic vision that doesn't include Lehman Brothers. Plus: a short film about hiring.

Cajamar faced a fatigued cédulas hipotecarias market when it launched its public debut yesterday (Thursday) morning, but the issuer benefitted from an extensive roadshow and, according to syndicate officials at the leads, was right to announce that the issue could be sub-Eu1bn.

Alpha Bank is seeking to amend a negative pledge clause that would allow it to issue covered bonds directly instead of via a special purpose vehicle, according to Fitch.

Just Eu13m in new settled purchases under the European Central Bank’s programme were reported this (Friday) morning, the lowest increase yet. The rise also made this week’s total the smallest for two months.

SNS Bank could make its public debut next week following the conclusion of a roadshow that the issuer embarked on this Wednesday, an official at the bank told The Cover.

In brief: Cajamar has closed books on a Eu750m five year cédulas hipotecarias issue that will be priced at 85bp over mid-swaps.

Reported purchases under the European Central Bank’s Eu60bn covered bond programme rose Eu163m this (Thursday) morning to Eu18.122bn.

Pfandbriefzentrale der schweizerischen Kantonalbanken yesterday (Wednesday) raised Sfr640m (Eu422m) in the Swiss franc market through a two tranche issue. The transaction, led by Zürcher Kantonalbank, comprised a Sfr350m tap of the issuer’s June 2015 deal and a new Sfr290m 10 year.