Covered Bonds
-
Korean lenders Woori Bank and Shinhan Bank have each hired banks to arrange residential mortgage-backed securitisation issues in the international markets in a sign that life is returning to the Asian structured finance market.
-
Moody’s yesterday (Wednesday) downgraded Yorkshire Building Society’s covered bonds from Aaa to Aa1 and cut Chelsea Building Society’s from Aa3 to A1. It removed these from review, but continued its reviews of five other UK programmes, four of which are being restructured in a bid to stave off rating actions. [This article corrects and expands on yesterday’s coverage of Moody’s actions.]
-
Banesto yesterday (Tuesday) priced its first jumbo covered bond since February 2007, a Eu1bn four year cédulas hipotecarias that is the third Spanish benchmark to hit the market since the ECB announcement on 7 May.
-
Moody’s yesterday (Tuesday) placed on review for possible downgrade the long and short term local and foreign currency deposit ratings of Česká spořitelna and Komerční banka as part of multiple rating actions on Czech banks.
-
The Dexia group took its benchmark covered bond funding since the start of last week to Eu2.5bn yesterday (Tuesday), when Dexia Kommunalbank priced a Eu1bn five year public sector Pfandbrief.
-
Erste Group Bank is in the market today (Wednesday) with a Eu1bn seven year mortgage Pfandbrief. Barclays Capital, Commerzbank, and Erste Group Bank have set guidance at 115bp-120bp over mid-swaps.
-
Eurex Bonds will go live with the pilot phase of its daily auctions for covered bonds on 20 July.
-
In brief: Moody’s today (Wednesday) downgraded Yorkshire Building Society’s covered bonds from Aaa to Aa1 and cut Chelsea Building Society’s from Aa3 to A1.
-
Standard & Poor’s yesterday (Tuesday) downgraded Hypo Investmentbank’s rating from A+ to A.
-
Moody’s yesterday (Tuesday) downgraded one Slovak covered bond issuer and placed on review for possible downgrade four others as part of rating actions on nine Slovak financial institutions.
-
Banesto and Dexia Kommunalbank are in the market with new issues this (Tuesday) morning, after having sounded out investors yesterday (Monday) while London was on holiday. Meanwhile, the leads on Deutsche Bank’s debut have emerged.
-
Dexia Kommunalbank is expected to price a Eu1bn five year public sector Pfandbrief this (Tuesday) afternoon, just a week after Dexia Municipal Agency sold a Eu1.5bn 12 year obligations foncières issue.