French programmes shrug off rating watch as ECB gears up

By Bill Thornhill
23 Oct 2014

Fitch put the AA+ rated covered bond programmes of Caisse Française de Financement Local (Caffil) and Compagnie de Financement Foncier (Coff), and the public sector programme of BNP Paribas, on rating watch negative (RWN) last Friday (October 17), following identical action on the French sovereign earlier in the week.

But covered bond spreads issued under the three programmes were unaffected by the news, traders said, thanks to expected central bank support through CBPP3. The Banque de France was seen buying on Monday morning.

“The Banque de France is very focussed on Obligations Foncières, which is the same ...

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