Covered Bonds

CIF Euromortgage has added Eu70m to its 4% October 2016 issue, continuing France’s domination of jumbo supply through taps and new deals in January into February. Meanwhile the government-guaranteed sector in euros was subdued.

Standard & Poor’s has put HSH Nordbank’s long term A rating on CreditWatch negative because it is concerned about the bank’s exposure to the shipping industry, which the rating agency said has a bleak outlook.

Standard & Poor’s yesterday changed from stable to negative its outlook on Norddeutsche Landesbank and its wholly-owned subsidiaries, Norddeutsche Landesbank Luxembourg and NordLB Covered Finance Bank. The long term ratings were affirmed.

All operating members of Hypo Real Estate Group were yesterday (Monday) downgraded by Moody’s, and the outlook on their ratings changed to negative.

Fitch has updated its model for rating Dutch residential mortgage-backed transactions, and proposed changes to its methodology for German residential mortgage-backed transactions that assume sharper falls in value in the event of a forced sale.

Fitch on Friday affirmed Wüstenrot Bank’s four outstanding public sector Pfandbriefe at AAA and removed them from negative review.

Standard & Poor’s on Friday changed its outlook on DnB Nor from stable to negative on expectations that the Norwegian bank’s asset quality will deteriorate further.

Two days after downgrading EBS Mortgage Finance, Fitch on Friday affirmed the AAA rating of its covered bonds, but said that it will be keeping a close eye on developments surrounding the covered bonds’ overcollateralisation and swap counterparty.

Moody’s yesterday (Sunday) announced a two notch downgrade of Barclays Bank from Aa1 to Aa3, with a stable outlook.

Moody’s today (Monday) affirmed the Aa3 rating of Crédit Foncier de France, but downgraded the bank financial strength rating from C to D+, equivalent to a baseline credit assessment of Baa3.

Bank of Scotland has launched the first issue off a new £15bn mortgage covered bond programme for its Intelligent Finance (IF) division, which uses a full pass-through structure.

Real money demand and a strong domestic bid coupled with healthy participation from foreign investors contributed to a successful move into the unguaranteed senior debt market by Commerzbank on Friday.