Currencies

Three issuers announced mandates this (Monday) morning, ensuring that the pipeline remains bulging even after three issuers closed books on new issues, as the pace of supply showed no sign of relenting in the second week of the new year.

Next week promises to be as busy as this week’s record opening to a year, with two more issuers having officially announced plans for benchmarks in the past 24 hours on top of three outstanding mandates. Supply of Eu5.5bn yesterday (Thursday) took the week’s total to Eu10.25bn from seven deals, just short of the eight totalling Eu11bn in the busiest ever week for the covered bond market at the end of September.

With four new jumbos hitting the market this (Thursday) morning, the number of benchmark issues this week is second only to the last week of September. However, investors have expressed disappointment about what they called expensive spread levels.

A Eu1.5bn seven year covered bond for BNP Paribas off its Home Loan programme yesterday (Tuesday) met with a strong reception from investors who, according to a BNP Paribas official, demonstrated an encouraging degree of conviction in the new issues that reopened the primary market.

Preparations for a new Pfandbrief for Dexia Kommunalbank Deutschland that began in December came to fruition yesterday (Tuesday) as the issuer priced a Eu1.25bn seven year benchmark, fulfilling its intention of coming to market in early 2010 if market conditions were supportive.

From EuroWeek: Delta Lloyd reopened the Dutch mortgage securitisation market this week with the successful placement of its Eu904.5m Arena 2009-1 issue. ABN Amro and Fortis also announced they will be redeeming residential mortgage securitisations they had previously declined to call at their step-up dates.

A Eu1bn 10 year obbligazioni bancarie garantite issue for UBI Banca yesterday (Thursday) showed that despite the approaching year-end there is still demand from investors looking for yield at the long end of the curve, said a syndicate official at one of the leads.

UBI Banca is understood to be holding investor meetings from today (Monday) to Wednesday, although a syndicate official familiar with the meetings said that they were not directly deal driven.

Caisse de Refinancement de l’Habitat today (Thursday) increased an April 2019 benchmark covered bond by Eu105m through Landesbank Baden-Württemberg, taking advantage of good investor interest for 10 year paper.

Ahorro Corporación Financiera launched the largest 10 year Spanish covered bond since July 2007 yesterday (Tuesday), a Eu500m AyT Cédulas Cajas issue. An ACF official told The Cover that the size matched investor and savings bank interest in the transaction.

SpareBank 1 Boligkreditt priced the first Norwegian jumbo since September 2008 yesterday (Tuesday) afternoon, a Eu1bn three year deal that the issuer told The Cover made good on its commitment to benchmark covered bond issuance every year.

New issues from Spain and Norway launched this (Tuesday) morning after UBS’s second benchmark covered bond yesterday (Monday) are making this week busier than most market participants had been expecting.