Maturity: 13 April 2011
Issue price: 99.68
Spread at re-offer: 30bp over mid-swaps
Launch date: Thursday 6 April
Payment date: 13 April
Joint books: DZ Bank, HVB, WestLB
We were pleased to get the mandate on this trade. The deal was not an easy one but that was due to the market rather than the credit. Investors like the Deutsche Telekom name and it will always be a favourite with accounts.
Investors seem to have been paralysed this week — the covered bond sector has struggled and that will always have a negative impact on the corporate market. Investors have also been waiting for the ECB decision on interest rates.
The deal was a success — we had always planned to issue it after the ECB decision. The wide distribution was pleasing.
The deal was primarily focused on the retail sector and was always going to be popular with German buyers, who took over 64%. The rest was distributed across Europe and Asia.
Banks unsurprisingly took more than 50%. The deal was great, especially as it went well in challenging market conditions
"...looks very much like German retail. It was marketed at 30bp over swaps and we bid 32bp. A bit of a non-event really."
"...a friendly German retail deal. The institutional accounts would have taken it 2bp-3bp wider, but it still works for retail. We bid for it but it is not surprising to see where the mandate went, although I am quite surprised Deutsche didn't get a piece of it."
"...we love this name and bought the bonds."
"...did the leads tell you they had sold all the bonds? I wouldn't have said that was true."