Covered Bonds

Deutsche Postbank is today (Thursday) increasing its 3.125% July 2014 debut public sector Pfandbrief issue by Eu500m at a much tighter level than where the original issue was priced on 3 July. And Caisse de Refinancement de l’Habitat is the latest French issuer to join the recent tapping activity.

Eurex Bonds has published a list of covered bond trades executed in continuous trading on its electronic platform to highlight the pick-up in activity it says has resulted from the introduction of its daily secondary market auctions. However, an analysis of the data shows that volumes are concentrated in only certain parts of the asset class.

An increase of Eu134m disclosed this (Wednesday) morning brought the total of purchases under the European Central Bank’s covered bond programme to Eu7.239bn.

The day’s increase in settled covered bond purchases reported by the European Central Bank dropped below Eu100m for the first time in over a week this (Tuesday) morning.

The Dutch central bank’s register of covered bonds has been updated and includes ABN Amro’s programme alongside that of ING Bank and NIBC Bank.

PLEASE NOTE: THE POLL IS NOW CLOSED. The category of best secondary market liquidity provider is being reinstated in our covered bond awards poll after leading investors contacted The Cover to ask for the opportunity to deliver their verdict on how banks have performed in this regard.

Standard & Poor’s today (Tuesday) placed NIBC Bank’s BBB+ rating on review for possible downgrade because of weaker than expected profitability and asset quality.

Legislation proposed by two congressmen does not, according to Moody’s, address the rating agency’s core concern that the cover pool of outstanding US covered bonds would have to be liquidated within 120 days of a sponsor bank default.

An increase of Eu428m reported this (Monday) morning shows that despite a lull in new issuance, buying under the European Central Bank’s purchase programme continues apace.

Compagnie de Financement Foncier launched the first publicly placed 10 year covered bond in Swiss francs for a non-domestic issuer in more than a year on Thursday.

Moody’s has today (Friday) downgraded from Aa2 to Aa3 bonds issued under ABN Amro’s Bouwfonds secured debt issuance programme, matching an identical cut to ABN Amro Bank’s rating last week.

A Eu306m increase disclosed this (Friday) morning took this week’s tally of reported purchases under the European Central Bank’s covered bond programme to Eu1.518bn, the second highest weekly total so far.