Currencies

Erste Group Bank yesterday (Wednesday) priced its debut jumbo Pfandbrief, which is also the first Austrian benchmark to be backed by mortgages and the first to be sold under the country’s mortgage bank law.

Banesto yesterday (Tuesday) priced its first jumbo covered bond since February 2007, a Eu1bn four year cédulas hipotecarias that is the third Spanish benchmark to hit the market since the ECB announcement on 7 May.

The Dexia group took its benchmark covered bond funding since the start of last week to Eu2.5bn yesterday (Tuesday), when Dexia Kommunalbank priced a Eu1bn five year public sector Pfandbrief.

Erste Group Bank is in the market today (Wednesday) with a Eu1bn seven year mortgage Pfandbrief. Barclays Capital, Commerzbank, and Erste Group Bank have set guidance at 115bp-120bp over mid-swaps.

Dexia Kommunalbank is expected to price a Eu1bn five year public sector Pfandbrief this (Tuesday) afternoon, just a week after Dexia Municipal Agency sold a Eu1.5bn 12 year obligations foncières issue.

Véronique Hugues, global head of long term funding at Dexia, told The Cover that the group was delighted to be back in the covered bond market, after Dexia Municipal Agency on Monday priced its first jumbo since being rescued in September.

Demand for Banques Populaires’ new benchmark yesterday (Tuesday) enabled the deal to be priced at the tight end of guidance, yet left room for the bond to perform today (Wednesday).

Banques Populaires this (Tuesday) morning opened books on a five year benchmark, taking the number of new jumbos to have been launched since the beginning of last week to nine, more than the eight of the first four months of the year.

Coming to the jumbo covered bond market for the second time in three months, Eurohypo yesterday (Monday) priced this year’s largest benchmark, and the second with a seven year maturity.

Dexia Municipal Agency yesterday (Monday) priced a Eu1.5bn 12 year obligations foncières issue at the tight end of guidance, marking a successful return to the benchmark covered bond market after the group’s rescue last September.

ING sized the first 10 year covered bond since the market burst back into life last week at Eu1.25bn this (Tuesday) morning. The deal is also the first new benchmark under the Netherlands’ covered bond legislation.

Eurohypo is today (Monday) pulling off a “blow-out” deal, according to a syndicate official away from the leads.