BPCE took French euro covered bond supply in 2011 to over €44bn on Thursday with its second obligations à l’habitat benchmark trade. French issuers have been among the most active since the market re-opened on August 24, with Crédit Agricole and Caisse de Refinancement de l’Habitat (CRH) also launching trades this week. Other names from the country are undertaking investor meetings, but with secondary spreads under pressure and strong supply across the curve, placement may become more difficult.
French covered bond indices have widened out since the start of July due to concern regarding the exposure of Frances banks to peripheral risk. The countrys high public debt has also driven CDS on credit institutions higher.
RBS analysts report that on a one-month basis CRH bonds have widened