Currencies

BNP Paribas has decided to take the plunge into the primary market where Caisse de Refinancement de l’Habitat proved unwilling, opening books on a new structured covered bond this (Wednesday) morning.

Norway’s Storebrand opened books on its non-benchmark euro debut this (Wednesday) morning, with the deal expected to price at the upper end of its size range this afternoon.

After its second jumbo Pfandbrief yesterday (Wednesday), The Cover spoke to Deutsche Postbank about what the deal says about the issuer’s standing with investors, and about the bank’s plans for the remainder of the year.

Deutsche Postbank priced a Eu1bn seven year mortgage backed deal this morning at the bottom end of size expectations. But while the pricing might not have excited investors, it provided some relief to other Pfandbrief issuers in the pipeline.

The book for a new seven year Pfandbrief from Deutsche Postbank is approaching the minimum Eu1bn size of the deal, with further accounts mulling pricing that pitches the mortgage backed deal close to public sector covered bonds.

Dexia Kommunalbank’s decision to test the long end of the market proved correct when it was able to price the first 10 year jumbo Pfandbrief in over a year yesterday (Thursday). The Cover spoke to the issuer about its bold move.

Swedbank is set to price its new Eu1bn three year covered bond this (Thursday) afternoon. However, the deal’s slow progress towards being narrowly oversubscribed was highlighted by some bankers outside the deal, who said that the deal had come too tight to a recent new issue from the Nordic region.

Dexia Kommunalbank breathed life into the long end of the covered bond market today (Thursday), pricing the first 10 year jumbo Pfandbrief in over a year. The deal suggests that, even as other jurisdictions appear to be reaching saturation point, the German market continues to benefit from its strong domestic bid.

Caixa Galicia continued the burst of Spanish issuance when it priced its new Eu500m two year cédulas yesterday (Wednesday) afternoon, but the deal only just crept over the minimum sizes set by the leads. Market participants warned that the decreasing enthusiasm for Spanish deals was demonstrated by the declining trend in order books over the last fortnight.

Dexia Kommunalbank is this (Wednesday) afternoon expected to launch the first 10 year covered bond since Caisse de Refinancement de l’Habitat at end of February, having mandated Deutsche Bank, Dresdner Kleinwort, DZ Bank and Landesbank Baden-Württemberg for the new issue.

Caixa Galicia opened books on a new cédulas this (Wednesdy) morning, and followed in Bankcaja’s lead in targeting a size of Eu500m-Eu1bn. As expected, the price guidance selected also puts it in the same space as Bancaja and Caixa Catalunya, rather than the tighter BankInter’s range, as clear tiers emerge in the Spanish primary market.

Santander Totta priced its debut covered bond this (Wednesday) morning, a Eu1bn three deal that was regarded as correctly pitched in terms of pricing, and reinforced the stability of re-offer levels in the primary market. (Updated to include issuer feedback.)