Currencies

Eurohypo yesterday (Thursday) issued the first 10 year jumbo Pfandbrief this year, a Eu1.5bn mortgage-backed deal that was priced at 70bp over mid-swaps. The level is “extremely tight”, the issuer told The Cover.

Danske Bank priced its first benchmark covered bond in a year yesterday (Wednesday) after adding Swedish mortgages as collateral to its international cover pool and a day after selling $5bn (Eu3.56bn) of government-guaranteed paper.

Dexia Municipal Agency yesterday (Wednesday) priced a Eu2bn 15 year public sector obligations foncières, the longest dated jumbo to come to market since July 2007. The issuer told The Cover that with the funding it has raised so far it can now head into the summer break in a confident frame of mind, although it might be back in the autumn.

Eurohypo will today (Thursday) price a 10 year mortgage-backed Pfandbrief 10bp tighter than a seven year deal that it sold just five weeks ago.

Dexia Municipal Agency adopted a cautious approach when launching the first 15 year covered bond benchmark since July 2007 [corrected from 1997] this (Wednesday) morning, but ended up with a comfortably oversubscribed order book and a deal much larger than its early minimum target.

Danske Bank is set to price its third euro benchmark covered bond and its first since June 2008 this (Wednesday) afternoon at the tight end of guidance.

Westdeutsche Immobilienbank yesterday (Tuesday) priced a Eu500m three and a half year mortgage Pfandbrief, spurring the primary market back into action after more than a week devoid of new issues. The issuer told The Cover that he is glad that he held firm when considering a new issue earlier this year.

Westdeutsche Immobilienbank today (Tuesday) broke the lull in primary market activity by launching a Eu500m Pfandbrief after more than a week without new jumbo supply.

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CIF Euromortgage priced the biggest covered bond benchmark since the collapse of Lehman Brothers yesterday (Wednesday) on the back of the strongest show of support from foreign investors for a jumbo issued out of France or Germany this year. The issuer told The Cover that the deal was a positive sign not only for CIF Euromortgage, but also for the wider market.

CIF Euromortgage will today (Wednesday) price a Eu2bn five and a half year obligations foncières transaction, the biggest new issue to hit the market this year. And another French issuer this morning tapped an outstanding benchmark.

Covered bonds are edging their way back into the Swiss franc market. As well as an appearance from Pfandbriefbank schweizerischer Hypothekarinstitute, Landesbank Baden-Württemberg sold a public sector Pfandbrief this week and Swedbank is bookbuilding for a mortgage-backed covered bond.