Covered Bonds

ING has opened books this morning on what is only its second covered bond. The 10 year benchmark mortgage bond’s attractive pricing drew strong demand in a crowded marketplace, although the eye-catching spread split opinion.

Crédit Mutuel-CIC (CM-CIC) continued the flurry of French issuance ahead of Société Générale’s debut, with a new Eu1.5bn two year structured covered bond set to price this afternoon. The deal demonstrates that it is not just the country’s obligations foncières that are in demand, although one banker outside the deal queried the pricing.

Following the launch of NIBC Bank’s first deal off a Eu7bn covered bond programme, The Cover spoke to an official at the Dutch bank about its issuance strategy and any plans for its German collateral.

SNS Bank printed its debut covered bond this morning as UBS placed a Swiss franc trade with one institutional account. The Sfr80m two year issue carries a 3.295% coupon.

In brief: Having completed its roadshow, Germany’s NordLB has decided to the time is nearly right to re-enter the primary market, mandating Barclays Capital, Citi, Dresdner Kleinwort, NordLB and UBS to lead manage the sale of a five year public sector euro benchmark Pfandbrief.

Feedback from market participants on the six service providers vying to provide the covered bond market with a new electronic trading platform suggests that only three are in with a realistic chance of coming out on top.

Société Générale has opened the books on its debut five year public sector obligations foncières that is due to be priced tomorrow (Friday).

Dexia Municipal Agency has closed the books on a Eu1.25bn three year obligations foncières issue after generating Eu1.65bn of orders this (Wednesday) morning. And the next French issue could hit the market soon.

Clydesdale Bank is set to join the cast of UK covered bond issuers, having incorporated Clydesdale Covered Bonds Limited Liability Partnership yesterday (Tuesday).

Finland’s OP Mortgage Bank priced its new Eu1bn covered bond yesterday (Tuesday) afternoon. The issuer told The Cover it was pleased at the high level of demand for its annual euro benchmark.

Eurohypo sold the first 10 year mortgage backed jumbo Pfandbrief yesterday (Tuesday) afternoon since before the crisis took hold last summer, a Eu1bn transaction priced at the tight end of guidance. A Eurohypo official said that the deal’s success vindicated the issuer’s decision to launch the transaction, which replaced its originally planned shorter dated public sector backed issue.