Currencies

CIF Euromortgage priced the tightest 10 year benchmark of the year yesterday (Tuesday) afternoon, a Eu1.25bn obligations foncières deal that the issuer told The Cover highlighted the attractiveness of covered bonds versus government guaranteed funding.

Deutsche Pfandbriefbank launched a 10 year public sector Pfandbrief this (Wednesday) morning that is the first German supply since the issuer came to market on 8 September.

Banco Santander Totta is gathering orders for a Eu1bn five year obrigacões hipotecarias, with guidance set at the 55bp over mid-swaps area. An official book update was not available by the time The Cover went to press, but the deal “is in pretty good shape”, said an official at one the leads.

Caja de Ahorros del Mediterráneo attracted Eu1.1bn of demand for a Eu1bn five year cédulas hipotecarias this (Friday) morning, which market participants said was a success for the issuer in a difficult market. Meanwhile, another Spanish savings bank is wrapping up its roadshow.

Abbey, the Santander subsidiary that is expected to launch a new benchmark this week, is facing a fatigued covered bond market in which several recently priced deals have not performed in the secondary market, syndicate officials said today (Tuesday).

Banca Popolare di Milano returned to the market yesterday (Thursday) with its second benchmark covered bond, fulfilling a promise to investors to come to the market once a year with a deal of up to Eu1bn, the issuer told The Cover. Meanwhile Banca Carige is understood to have awarded the mandate for what could be the next Italian covered bond and would be its debut public issue.

Banca Popolare di Milano will price a Eu1bn seven year issue of obbligazioni bancarie garantite, launched this (Thursday) morning, at the tight end of guidance. The deal takes the number of new benchmarks launched this week to eight, a record for the covered bond market. Meanwhile Intesa Sanpaolo has retained a new issue off its public sector programme.

Danske Bank priced a Eu1.25bn six year covered bond in the middle of guidance of the 45bp over area yesterday (Wednesday). A tighter trade would have been possible, said a syndicate official at one of the leads, but with a slightly weaker tone to the market the leads did not want to jeopardise the issue’s chances of performing in the secondary market.