Currencies

Skandinaviska Enskilda Banken is today (Friday) testing the market for a new benchmark covered bond, The Cover understands.

Eurohypo on Tuesday afternoon priced its first jumbo of the year, a Eu1.25bn five year mortgage Pfandbrief, at 100bp over mid-swaps, the tight end of 100bp-110bp over initial guidance. The issue marked the successful implementation of a three-pronged funding strategy for the Commerzbank group.

Société Générale today (Wednesday) priced a Eu1.25bn 10 year public sector obligations foncières issue after meeting with healthy demand for a deal that visited a part of the curve that has not been tapped by a jumbo since May last year.

Breaking news: Société Générale has opened books on a public sector obligations foncières issue, a 10 year deal that is the first benchmark issue in that part of the curve since ING tapped the maturity in May 2008.

Austria’s Hypo Investmentbank launched its first public sector Pfandbrief issue last Thursday, a Eu120m deal, a day after Moody’s assigned a Aaa rating to its covered bond programme.

Eurohypo is expected to price a jumbo five year mortgage Pfandbrief later today (Tuesday), after having had to negotiate a tricky price discovery process.

Caixanova got its inaugural three year government-guaranteed transaction done yesterday (Wednesday) afternoon. The Eu1bn issue via Barclays Capital, BBVA, BNP Paribas, Caja Madrid, DZ Bank and HSBC was priced at the tight end of the 85bp-90bp guidance.

Caixanova has finally opened books on its first government-guaranteed issue, albeit at the widest spread yet for a Spanish issue. Meanwhile, Dexia and Lloyds yesterday (Tuesday) set new benchmarks for size in the government-guaranteed asset class.

Dexia Crédit Local today (Tuesday) found its second visit to the government-guaranteed market easier than its first and is set to price its new issue this afternoon. Meanwhile Lloyds TSB found demand from unexpected areas in sterling and OeVAG wrapped up its four year euro.

Dexia Crédit Local is hoping to win over investors to its three-way guaranteed paper when it comes to market tomorrow (Tuesday), while OeVAG has today (Monday) been negotiating the differences in opinion on Austrian spreads.

Spanish and Dutch financial institutions are today (Tuesday) braving the government-guaranteed market after yesterday's turmoil. The two deals are coming wider than recent comparables, but are both understood to be going well.