Covered Bonds

Pfandbriefbank schweizerischer Hypothekarinstitute has executed the fourth private placement brokered by the Swiss National Bank to help Credit Suisse and UBS raise funding.

Moody’s yesterday (Wednesday) placed on review for possible downgrade the long term ratings of several Nordic covered bond issuers.

Compagnie de Financement Foncier today (Wednesday) increased its October 2012 obligations foncières by Eu800m.

The European Central Bank’s running total of settled covered bond purchases this (Wednesday) morning reached Eu2.398bn, taking the average daily amount above that necessary for the ECB to hit Eu60bn over the one year life of the programme.

The first trades have been executed on Eurex Bonds’ secondary market covered bond auctions.

A Eu1.45bn five year AyT Cédulas Cajas issue confounded sceptics by becoming the first multi-cédulas benchmark to have been successfully placed since November 2007 yesterday (Tuesday). One market participant even went so far as to describe it as marking a return to business as usual – albeit at wider levels.

Fitch yesterday (Tuesday) changed the rating outlook on Banca Popolare di Milano from stable to negative.

Newcastle Building Society has avoided a downgrade of its covered bonds by Moody’s by amending the underlying programme structure.

Julia Hoggett is leaving Depfa after five years, during which she helped maintain the issuer’s leading position in the covered bond market until its demise as part of the Hypo Real Estate Group in September 2008.

Caixa Económica Montepio Geral priced its inaugural covered bond, a Eu1bn three year mortgage-backed deal, on Friday. It was the first Portuguese jumbo without a triple-A rating from Moody’s, but the issuer told The Cover that investors did not seem overly concerned about this.

The European Central Bank reported this (Tuesday) morning that purchases under its covered bond programme had reached Eu1.883bn, making the daily increase, at Eu803m, the highest yet.