Covered Bonds
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In brief: Moody’s today (Wednesday) assigned provisional a triple-A rating to Bilbao Bizkaia Kutxa’s cédulas hipotecarias.
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Woori Bank and Shinhan Bank, two of the Korean borrowers hoping to tap the covered bond market, have mandated international banks to lead the structuring of their deals, The Cover has learnt.
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Given Mexico’s demographics, Mexican covered bond issuance, possibly targeted at international accounts, is a question of when, not if, according to market participants. The exact timing will depend on the resolution of matters such as the rights of depositors and limits on issuance, but there are hopes that the process could pick up speed. -
Principality Building Society, the largest building society in Wales, has set up two covered bond vehicles, joining the ranks of other building societies that have taken the first step towards covered bond issuance.
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Groupe Caisse d’Epargne’s Eu1bn two year debut, priced yesterday (Monday) at 51bp over mid-swaps, offered no relief from the repricing of the covered bond market signalled by recent transactions.
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In brief: The Co-operative Bank is launching what is believed to be the first issue off its £3bn covered bond programme.
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The Association of German Pfandbrief Banks has scheduled a meeting for this Thursday afternoon to discuss inter-dealer market-making after its resumption last week went worse than the association had expected. [Updated to correct extent of widening.]
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BRE Bank Hipoteczny will not be taking any immediate steps in response to Moody’s decision, announced on Friday, to place the Polish bank’s public sector and mortgage backed covered bonds on review for possible downgrade, Paweł Łopuszyński, director of treasury department, told The Cover.
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With UBI Banca having decided not to proceed with its debut at the end of last week, a French issuer was said to be testing the market this (Monday) morning for a new issue in the wake of the US government’s rescue package for Fannie Mae and Freddie Mac. While stock markets greeted the news with glee, the picture was less clear cut for the covered bond market, and whether issuers will have more luck this week than last remains unclear.
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