Covered Bonds
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Nationwide Building Society is in merger talks with Derbyshire and Cheshire, which turned to the larger institution because of difficulties they are facing. The planned merger has not affected Nationwide’s ratings.
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Fitch Ratings has appointed Alessandro Settepani head of its southern European covered bond team as part of a reorganisation of its Italian structured finance team. He replaces Alex Linden, who recently left the rating agency.
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Sparebank 1 Boligkreditt and the Swedish Covered Bond Corp showed the new realities of the covered bond market this week, taking spreads to new wides to win over investors. The Cover spoke to officials at the two institutions about the thinking behind their new issues. -
In brief: Newcastle Building Society is the latest UK financial institution to turn to covered bonds, The Cover has learnt.
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A Eu1.25bn two year deal for Swedish Covered Bond Corp this (Thursday) morning priced 18bp wider than comparable issuance just two weeks ago signalled the repricing of the covered bond market. But while some issuers and investors were rueing the leap in spreads, many bankers were welcoming the new realism being adopted by this week’s borrowers, also including CIBC, Sparebank 1 and possibly an Italian before the week is out.
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Hypo Investmentbank is eyeing a Eu1bn maximum deal at the short end of the curve for its inaugural jumbo Austrian Pfandbrief, the bank’s head of funding told The Cover ahead of its roadshow later this month.
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CIBC priced a Eu2bn debut issue yesterday (Tuesday) afternoon, successfully tackling the difficult market to show that in spite of Dexia Kommunalbank’s failure to get its jumbo public sector Pfandbrief away on Monday, the primary market remains open.
