Currencies

Deutsche Pfandbriefbank yesterday (Tuesday) priced a Eu1.5bn five year mortgage-backed Pfandbrief that marked the Hypo Real Estate group’s post-rescue return to the public funding markets. The issuer pointed to the size of the order book and number of participating accounts as a sign of investors’ readiness to accept Deutsche Pfandbriefbank as an issuer.

Dexia Municipal Agency yesterday (Monday) priced its third obligations foncières jumbo of the year, and the fourth covered bond benchmark for the Dexia group. But a rapid bookbuilding process for the Eu1bn seven year issue showed that investors’ credit lines were still open for further supply from Dexia MA, the issuer told The Cover.

Dexia Municipal Agency today (Monday) launched the first new French benchmark since 16 July, a Eu1bn seven year public sector obligations foncières issue that is due to be priced at the tight end of guidance.

Eurohypo on Wednesday launched its first public sector jumbo Pfandbrief in over two years, a Eu1bn five year deal that was priced at 12bp over mid-swaps. A book in excess of Eu1.5bn underwhelmed some market participants away from the deal, but the issuer told The Cover that it was executed at the right price.

Banesto (Banco Español de Crédito) yesterday (Wednesday) secured the tightest level for a cédulas since the market reopened in May when it priced a Eu1.25bn three and half year mortgage-backed issue at 45bp over mid-swaps. The issuer told The Cover that while other institutions may be waiting for spreads to tighten further, it was happy with its decision to launch a deal in the early days after the summer break.

Banesto (Banco Español de Crédito) this (Wednesday) morning launched the first single issuer cédulas since the beginning of June, a Eu1.25bn three and a half year mortgage-backed issue that will be priced at 45bp over mid-swaps, 75bp tighter than where the issuer sold a four year issue on 26 May.

Eurohypo will today (Wednesday) price a Eu1bn five year public sector Pfandbrief at 12bp over mid-swaps, the tight end of guidance, despite an order book size that left some market participants unimpressed.

Bayerische Landesbank launched the first new jumbo Pfandbrief since early July yesterday (Thursday), but although investors placed orders of almost Eu4bn for the Eu1bn eight year issue, market participants are concerned that German covered bond trading levels may be unsustainable.

Bayerische Landesbank is reopening the benchmark covered bond market after the summer lull today (Thursday) with the first new jumbo Pfandbrief since the European Central Bank launched its purchase programme on 6 July. And it is doing so at levels some 20bp tighter than the last comparable transaction.

Deutsche Postbank is today (Thursday) increasing its 3.125% July 2014 debut public sector Pfandbrief issue by Eu500m at a much tighter level than where the original issue was priced on 3 July. And Caisse de Refinancement de l’Habitat is the latest French issuer to join the recent tapping activity.

Westfälische Landschaft Bodenkreditbank is today (Friday) adding Eu250m to a Eu1.25bn November 2014 public sector Pfandbrief launched on 13 May. The increase is the first jumbo covered bond supply from a German issuer this month.