Covered Bonds
-
After several hours of bookbuilding today, SCBC has pulled, at least temporarily, the short four year euro benchmark deal that it had expected to price later today. The leads blamed market volatility but the deal was also suffering as it came in a similar tenor to the recent Swedbank and DnB Nor new issues that had made heavy weather of bookbuilding.
-
The steady flow of UK names creating covered bond programmes continued yesterday (Tuesday) with another building society registering entities necessary for covered bond issuance, while an existing issuer from the country bought back part of its outstanding bonds last week
-
Fitch published an exposure draft for its Covered Bonds Swap Criteria yesterday, with the rating agency saying that the increasing risk of issuers seeing their unsecured ratings downgraded meant that it was now a “timely” moment to consult with the covered bond market.
-
Danske Bank has opened the books on a new five year euro benchmark bond backed by international residential mortgage collateral from its innovative Cover Pool I this morning. Like NordLB’s new five year public Pfandbrief, it was bolstered by robust support from domestic investors.
-
NordLB priced a new Eu1bn five year jumbo Pfandbrief at the tight end of guidance this morning after bookbuilding strongly yesterday. It was supported by a strong domestic bid and the shrinking supply of public Pfandbrief, with issuers from other classes and regions looking on enviously at the pricing still achieved from the product.
-
In brief: With the primary market still active, one Scandinavian issuer has joined the pipeline and a French borrower has completed its roadshow. Meanwhile a fellow Scandinavian issuer has added Namenspfandbriefe to its funding options.
-
Société Générale’s Eu1bn debut five year obligations foncières launched last week might have struggled for oversubscription but the issuer said today that both the pricing of the bond and the structure of the cover pool had fully satisfied investors.
-
-
We’d been promised it for some time and, sure enough, Barclays Capital at last made its comeback in May. After grabbing a big chunk of the surge in issuance last month the bank is now in second place, behind Deutsche and ahead of UniCredit.
