Covered Bonds

NIBC has put on hold its plans to issue a debut public covered bond after the Dutch central bank took over DSB Bank.

Deutsche Pfandbriefbank this (Thursday) morning priced only its second jumbo since the Hypo Real Estate group was bailed out in September 2008, a Eu1bn 10 year public sector Pfandbrief launched the day after the German government’s squeeze-out of minority shareholders came into effect.

Banca Santander Totta yesterday (Wednesday) priced a Eu1bn five year mortgage-backed benchmark in the middle of guidance of the 55bp over mid-swaps area. The issuer took heed of a weaker market and did not try to force the pricing, said a syndicate official at one of the leads.

Canadian Imperial Bank of Commerce has amended its covered bond programme to make self-originated National Housing Act mortgage backed securities eligible for inclusion in the cover pool backing its covered bonds. The issuer told The Cover that it does not have any immediate intention to add these assets to the cover pool, but that their inclusion would only enhance the quality of the collateral.

CIF Euromortgage priced the tightest 10 year benchmark of the year yesterday (Tuesday) afternoon, a Eu1.25bn obligations foncières deal that the issuer told The Cover highlighted the attractiveness of covered bonds versus government guaranteed funding.

Moody’s yesterday (Tuesday) downgraded Kommunalkredit Austria’s long term senior rating from Aa3 to Baa1, on stable outlook, citing the bank’s impaired franchise and longer term uncertainty about its future as a standalone viable entity.

Buying under the European Central Bank’s covered bond programme reached Eu17.959bn this (Wednesday) morning, when a Eu218m increase in settled purchases was reported.

Deutsche Pfandbriefbank launched a 10 year public sector Pfandbrief this (Wednesday) morning that is the first German supply since the issuer came to market on 8 September.

Banco Santander Totta is gathering orders for a Eu1bn five year obrigacões hipotecarias, with guidance set at the 55bp over mid-swaps area. An official book update was not available by the time The Cover went to press, but the deal “is in pretty good shape”, said an official at one the leads.

Delegates at the Euromoney/ECBC conference in Copenhagen last month were generally downbeat about the pilot phase of Eurex Bonds’ covered bond auctions. But, speaking to The Cover yesterday (Monday), general manager Laurent Ortiz said that market participants needed to look at the trading platform’s achievements in a broader context.

CIF Euromortgage is in the market today (Tuesday) with its first 10 year benchmark in three years. Meanwhile, Deutsche Pfandbriefbank is preparing a follow-up to its comeback of September along with its new “pbb” moniker.