Currencies

A Eu500m three year deal for Dexia’s Luxembourg covered bond issuer yesterday (Wednesday) reopened the Luxembourg benchmark lettres de gage market that had lain dormant since November 2006. The investor response to the issue was “overwhelming” and bodes well for further issuance in the format, said the issuer.

Banca Carige will price a Eu1bn seven year debut benchmark covered bond this (Wednesday) afternoon at a level that met with a strong response from investors even though some were left with disappointed expectations.

UniCredit will today (Monday) price a Eu1bn long 12 year obbligazioni bancarie garantite issue at 60bp over mid-swaps, a level that one syndicate banker suggested would have been difficult to achieve a week ago before market conditions took a turn for the better.

SNS Bank told The Cover that it was unfazed by DSB Bank’s failure and Eurohypo’s wider than expected pricing on Monday when it launched its first benchmark covered bond yesterday (Tuesday), a Eu1bn six year deal executed around two years after its programme was established.

Eurohypo yesterday (Monday) priced its fourth and tightest mortgage-backed benchmark this year, a Eu1bn long five year jumbo sold at 25bp over mid-swaps. The issuer told The Cover that a sounding exercise on Friday served its intended purpose of price discovery given that it has no crystal ball.

SNS Bank has closed the books for its debut benchmark covered bond having attracted around Eu1.5bn of orders for a six year issue. The deal will be priced in the middle of guidance this (Tuesday) afternoon, but the final size had yet to be confirmed by the time The Cover went to press.

Eurohypo launched a Eu1bn long five year mortgage-backed Pfandbrief this (Monday) morning that will be priced at 25bp over mid-swaps, the middle of guidance that was set wider than initial levels investors were presented with on Friday. Only one issuer is widely expected to follow it into the primary market this week.

Cajamar faced a fatigued cédulas hipotecarias market when it launched its public debut yesterday (Thursday) morning, but the issuer benefitted from an extensive roadshow and, according to syndicate officials at the leads, was right to announce that the issue could be sub-Eu1bn.

In brief: Cajamar has closed books on a Eu750m five year cédulas hipotecarias issue that will be priced at 85bp over mid-swaps.

Deutsche Pfandbriefbank this (Thursday) morning priced only its second jumbo since the Hypo Real Estate group was bailed out in September 2008, a Eu1bn 10 year public sector Pfandbrief launched the day after the German government’s squeeze-out of minority shareholders came into effect.

Banca Santander Totta yesterday (Wednesday) priced a Eu1bn five year mortgage-backed benchmark in the middle of guidance of the 55bp over mid-swaps area. The issuer took heed of a weaker market and did not try to force the pricing, said a syndicate official at one of the leads.