Currencies

Barclays Bank will today (Tuesday) price the first benchmark covered bond launched outside France and Germany in nearly a month after building an oversubscribed order book for a Eu1bn 12 year issue.

WestLB took advantage of positive momentum in the covered bond market to price the fourth benchmark of the week last Friday, and bankers today (Monday) said that it remains open to new issues.

Rarity value and good name recognition among investors helped Westfälische Landschaft Bodenkreditbank yesterday (Thursday) price a Eu1bn long five year public sector Pfandbrief at the tightest level of any covered bond benchmark for a year-and-a-half. The issuer told The Cover that at such a level a jumbo appearance made sense from several perspectives.

WestLB will price a Eu1bn five year public sector Pfandbrief this (Friday) afternoon on the back of a more muted response from investors than that enjoyed by a similar deal for Westfälische Landschaft Bodenkreditbank yesterday (Thursday).

Dexia Municipal Agency broke a lull in the primary market with a Eu1bn eight year obligations foncières issue yesterday (Wednesday) that demonstrated the viability of issuance in spite of the fragile market conditions, with two issuers today (Thursday) following suit and another announcing a mandate.

Benchmarks launched this (Thursday) morning for BNP Paribas Public Sector SCF and Westfälische Landschaft Bodenkreditbank were two and three times oversubscribed, respectively. Such strong support, notably from German accounts, enabled the Pfandbrief to become the first jumbo priced in the single-digits over mid-swaps since August 2008, and another deal has already been announced.

Dexia Municipal Agency is today (Wednesday) bookbuilding for an eight year obligations foncières issue that is the first benchmark covered bond of the week, and Dexia’s first since the European Commission approved the group’s restructuring plan earlier this month.

Caisse de Refinancement de l’Habitat sold a Eu1.2bn 10 year covered bond yesterday (Wednesday), taking advantage of a back-up in yields prompted by an easing of the Greek crisis.

Eurohypo yesterday (Wednesday) priced its first jumbo Pfandbrief of the year, a Eu1.5bn three year deal that tapped a maturity the issuer had not used for a new benchmark since before the onset of the financial crisis.

Optimism that the nadir of the Greek crisis has passed helped Caisse de Refinancement de l’Habitat and Eurohypo launch successful benchmark covered bonds this (Wednesday) morning.

Terra Boligkreditt has joined the list of issuers waiting to launch euro-denominated covered bonds, having announced a mandate for a European roadshow for next week.

The European Central Bank in January bought more covered bonds in the primary market than in any other month of its Eu60bn purchase programme, according to its latest monthly report on the scheme released yesterday (Thursday).