Covered Bonds

Westfälische Landschaft Bodenkreditbank is today (Friday) adding Eu250m to a Eu1.25bn November 2014 public sector Pfandbrief launched on 13 May. The increase is the first jumbo covered bond supply from a German issuer this month.

Fitch yesterday (Wednesday) downgraded ING Bank from AA- to A+. The rating of the issuer’s mortgage-backed covered bonds was affirmed at AAA.

An above average jump in the European Central Bank’s covered bond purchases on a day when the only public deal to have been settled is longer than 10 years has raised questions over the maturity restrictions applicable to the programme.

Update: NIBC Bank’s Eu7bn covered bond programme has been registered with the Dutch central bank, the issuer announced today (Thursday).

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NIBC Bank is preparing minor changes to its programme to maintain its covered bonds’ AAA rating from Fitch after the agency today (Wednesday) downgraded the institution’s long term rating and placed the covered bonds on negative review. And the issuer’s covered bonds could be registered with the Dutch central bank very soon, an official at the bank told The Cover.

The European Central Bank this (Wednesday) morning disclosed a Eu235m increase in the cumulative amount of covered bonds bought under its purchase programme.

Total spending under the European Central Bank’s covered bond programme this (Tuesday) morning stood at Eu5.694bn after Eu139m of purchases settled yesterday (Monday) were added to the figure.

Netherlands-based insurance company Aegon hopes that its Aegon Bank subsidiary will be ready to issue covered bonds by the end of this year and benchmark transactions are on the agenda, an Aegon official told The Cover.

Nordea Hypotek has issued a Nkr750m (Eu86m) five year covered bond, catering to Norwegian krone investors that need triple-A securities but are struggling to find paper from domestic issuers.

Fitch yesterday (Monday) revised the outlook on Banco BPI’s rating from stable to negative.

The European Central Bank this (Monday) morning disclosed a Eu468m increase in settled purchases under its covered bond programme, the highest jump since 22 July when spending first breached the average daily amount necessary for the ECB to hit Eu60bn over the life of the programme.