Currencies

Abbey National Treasury Services priced a Eu1bn three year covered bond at 68bp over mid-swaps yesterday (Thursday) after having gone out with guidance mindful of the eye-catching spread at which Lloyds TSB had initially marketed a deal on Tuesday. An official at Lloyds TSB, meanwhile, told The Cover that judging the right starting level had been more complicated than usual.

Swedbank Mortgage is planning to launch a seven year benchmark covered bond next week, with market participants suggesting that the deal could come at a wider level than was expected earlier this week.

Abbey National Treasury Services has built a thrice oversubscribed order book for a Eu1bn three year issue that will be priced today (Thursday), a day after Lloyds TSB made its Regulated Covered Bond debut. Meanwhile, two more new issues have been mandated.

SpareBank 1 Boligkreditt launched a Eu1.25bn seven year covered bond a day earlier than planned yesterday (Wednesday) after being encouraged by feedback sparked by the deal’s announcement on Tuesday, the issuer told The Cover.

Lloyds TSB has priced a Eu1.5bn five year Regulated Covered Bond inside HBOS’s secondary curve, whose sway over the final re-offer level market participants had been debating given that the two issuers are part of the same group. Meanwhile, SpareBank 1 Boligkreditt issued a Eu1.25bn seven year deal.

Terra Boligkreditt will today (Monday) price a Eu600m two-and-a-half year covered bond that was increased from Eu500m on the back of strong demand, kick-starting what bankers expect to be a busy week for issuance.

SNS Bank was in no rush to launch a Eu1bn seven year deal that was priced on Wednesday, an official at the Dutch bank told The Cover, and the extra time it gave investors paved the way for a successful outcome.

SNS Bank opted for a Eu1bn size for a seven year covered bond launched yesterday (Wednesday) to ensure a good performance, said a syndicate official at one of its leads, although the size and quality of the order book would have allowed for a larger deal. Meanwhile, Aktia Real Estate Mortgage Bank hit the tight end of guidance but nevertheless paid a premium for the issue’s Eu500m size.

A positive reception for Erste Group’s inaugural public sector benchmark covered bond demonstrated that perceptions of Austrian credit have moved on after a period of negative headlines, a syndicate official at one of the leads told The Cover. Meanwhile, Dexia wrapped up its forth benchmark covered bond of the year.

Deals for Dexia Kommunalbank and Erste Group got the primary market off to a strong start this (Tuesday) morning, with both issues oversubscribed and executed swiftly. Further issuance is expected this week, with SNS Bank already sounding out a new issue.

A period of instability brought on by mounting concerns about peripheral sovereigns meant that Banco Popolare had to wait more than three weeks to launch a deal after embarking on a roadshow, but the issuer was rewarded with an oversubscribed order book and strong support from real money accounts. Meanwhile Caisse de Refinancement de l’Habitat has launched two taps.