Covered Bonds

Achmea Hypotheekbank and NIBC are working on ways to address revisions to Standard & Poor’s rating methodology that put a cap of AA on issues involving A-2 rated derivative counterparties.

In brief: Infonavit, the Mexican federal fund for worker housing, is reported to be hoping to raise up to half of its Ps10bn (Eu604m/$762m) funding requirement next year through covered bond issuance.

The corporate bond market is booming, KfW has celebrated its 60th birthday with a bumper order book, and government guaranteed issuance is spreading. However, all this is happening at a price. And apart from the odd tap, the covered bond market can do no more than watch the new pricing landscape take shape.

Rating action: Moody’s yesterday (Tuesday) placed on review for possible downgrade the Aa3 long term ratings of Bank of Ireland and Allied Irish Banks.

Moody’s yesterday (Monday) affirmed the Aaa rating of Cédulas TDA 5, FTA.

Standard & Poor’s yesterday (Monday) downgraded OTP Mortgage Bank’s long term rating from BBB+ to BBB. The outlook is negative.

Marfin Egnatia has launched the second Greek covered bond programme and the first to use a direct issue structure.

Banque AIG has taken action to remedy the rating trigger breach it committed in the middle of October as Liquidity Facility Provider under the liquidity facility agreement in Cédulas TDA 5, FTA.

EBS Building Society has set up EBS Mortgage Finance plc as the issuer for its asset covered securities (ACS) programme, and Anglo Irish Bank Corporation has established Anglo Irish Mortgage Bank.