Currencies

Buoyed by the support of investors who had been absent from the covered bond market, Banco Popular Español yesterday (Monday) afternoon priced the first jumbo since Thursday’s announcement by the European Central Bank of details of its covered bond purchase plan. And a French issuer is said to be sounding the market today (Tuesday) for a possible new issue.

Banco Popular Español has the jumbo market to itself today (Monday). The Spanish issuer is the first institution to launch a new issue after Thursday’s announcement by the European Central Bank of details of its covered bond purchase plan, with one syndicate banker saying he was surprised there was not more primary market activity in covered bonds.

Aareal Bank today (Thursday) priced a Eu500m three year mortgage-backed Pfandbrief, taking advantage of positive market conditions to launch a deal that corresponds well with its underlying cover pool.

Aktia Real Estate Mortgage Bank successfully priced a Eu600m, Aa1 covered bond this (Wednesday) morning, which bankers said highlighted the flexibility on offer in the market.

Deutsche Bank yesterday (Tuesday) priced its inaugural Pfandbrief, a Eu1bn seven year mortgage-backed benchmark, at 55bp over mid-swaps off the back of a book that was more than five times covered.

BNP Paribas priced its first public sector obligations foncières issue, a Eu1bn five year transaction, at the tight end of guidance yesterday (Tuesday) afternoon, turning its deal around quickly after laying the foundations for the debut a few months ago.

BNP Paribas will this (Tuesday) afternoon price its first public sector obligations foncières issue, a Eu1bn five year deal, at the tight end of guidance. And another French obligations foncières issuer is said to be looking at this part of the curve.

Aktia Real Estate Mortgage Bank is today (Tuesday) sounding out investors for a five year non-jumbo.

Deutsche Bank has closed books on its debut Pfandbrief issue and will price the seven year issue at 55bp over mid-swaps, the tight end of guidance, while BNP Paribas also looks set to hit a relatively tight level on its first public sector obligations foncières.

Swedbank Mortgage on Friday priced a Eu1.25bn five year jumbo at 130bp over mid-swaps and while the pricing it got could have been better, the issuer told The Cover, it was a price worth paying.

Swedbank Mortgage will this (Friday) afternoon price the first Swedish jumbo since the European Central Bank’s announcement three weeks ago, a Eu1.25bn five year mortgage-backed benchmark. And a further issue from non-euro Scandinavia could be on the horizon.