Covered Bonds

Caixa Geral de Depósitos will this (Thursday) afternoon price its debut public sector covered bond, a Eu1bn five year deal, after Banco BPI reopened the Portuguese sector yesterday (Wednesday). In a reflection of how rapidly spreads are tightening in the market, the deal was launched this morning with guidance set around 10bp tighter than a level syndicate officials had discussed at the beginning of the week.

Banco BPI has closed books on a Eu1bn three year issue as the busy primary market shows no signs of slowing down. Several other candidates are in the wings waiting to tap into the strong demand, although there are signs that investors are not buying just anything they are being shown.

GE SCF won acceptance from European covered bond investors for its debut obligations foncières issue yesterday (Tuesday), pricing a Eu1bn five year deal at 105bp over mid-swaps.

Fitch yesterday (Tuesday) published the new criteria it will use to assess liquidity risks in covered bonds, completing a review process that was announced to the market in March. The final criteria are unchanged in most respects from the rating agency’s initial proposal, but Fitch this (Wednesday) morning emphasised that it spent a lot of time discussing the feedback it received during the consultation period.

Moody's yesterday (Tuesday) confirmed the Aaa rating of Principality Building Society's mortgage covered bonds following a restructuring of the issuer’s programme.

ABN Amro yesterday (Monday) priced a Eu2bn five year mortgage-backed benchmark at 98bp over mid-swaps, the tightest level this year for a jumbo issued outside of France and Germany. The issuer spoke to The Cover about the comeback transaction and the forthcoming registration of its programme.

Data includes jumbo issues in euros and $1bn minimum issues in dollars; excludes retained deals under Dealogic criteria.

Data includes jumbo issues in euros and $1bn minimum issues in dollars; excludes retained deals under Dealogic criteria.

Deutsche Kreditbank is pricing its first mortgage backed Pfandbrief issue this (Tuesday) afternoon, a Eu500m five year deal that will come at the tight end of guidance.

In brief: Fitch today (Tuesday) announced the final criteria it uses to assess liquidity risks in covered bonds after giving market participants time to comment on an exposure draft published in March. The covered bonds of three institutions have been downgraded as a result of the new criteria.

In brief: The books were opened for GE SCF’s first obligations foncières issue this (Tuesday) morning and the leads have reported that the maximum Eu1bn deal size has been exceeded, although the pace of sales appears slower than on recent jumbos.

Fitch assigned Skipton Building Society’s mortgage covered bond programme an improved Discontinuity Factor, lowering it from 9.9% to 6.5%, after the issuer modified its programme to have a partial pass-through structure.