Currencies

HSH Nordbank yesterday (Monday) priced a Eu500m three year Pfandbrief issue that could well be the last sizeable new issue bought by euro-zone central banks operating under the European Central Bank’s purchase programme, which today (Tuesday) appeared to have passed its targeted Eu60bn. [Amended.]

HSH Nordbank will shortly close books on a Eu500m three year public sector-backed Pfandbrief that was the only sizeable new covered bond in the market this (Monday) morning, with the end of the European Central Bank’s purchase programme injecting some uncertainty into the market.

Settled purchases under the European Central Bank’s covered bond programme stood at Eu59.549bn this (Friday) morning, but given a time lag between purchases being made and reported, it is possible that the Eu60bn earmarked for the scheme may has already been spent.

National Bank of Greece has set up a second covered bond programme “as part of its strategic planning for optimal use of its balance sheet and development of contingent liquidity”, it said yesterday (Thursday).

Eurohypo yesterday (Wednesday) priced a Eu500m four year mortgage-backed Pfandbrief, the fourth sub-Eu1bn deal of six sizeable issues launched this week. Meanwhile, HSH Nordbank plans to access the benchmark covered bond market.

Eurohypo is today (Wednesday) sizeing a four year Pfandbrief at Eu500m, the lower end of a targeted size range, in response to muted demand in a market where Eu4.25bn of supply has hit the market in a day-and-a-half.

Banca Monte dei Paschi di Siena, the world’s oldest banking group, yesterday (Tuesday) publicly inaugurated its Eu10bn Italian covered bond programme with a five year issue that achieved a targeted size of Eu1bn.

Four covered bond issuers were this (Monday) morning said to be lining up to tap the covered bond market, with the level being floated for a mooted Italian transaction surprising market participants.

Danske Bank yesterday (Wednesday) sold the first Nordic 12 year benchmark covered bond after heeding investor calls for a long maturity, a syndicate official at Danske told The Cover.

SpareBank 1 Boligkreditt priced a Eu1bn five year mortgage-backed covered bond yesterday (Wednesday), confident that it could reach the benchmark size despite coming amid heavy supply, the issuer told The Cover.

Compagnie de Financement Foncier stood out from the crowd with a Eu600m 15 year obligations foncières issue yesterday (Tuesday), which the issuer told The Cover underlined its profile in the long end of the curve. Meanwhile, Crédit Agricole got a Eu1bn five year deal away amid a torrent of shorter dated supply.

New covered bonds launched by Danske Bank, Lloyds TSB and SpareBank 1 Boligkreditt met with modest demand today (Wednesday), although syndicate bankers highlighted high quality order books and sub-Eu1bn issue sizes in longer maturities as respectable achievements.