Currencies

Bayerische Landesbank achieved one of the highest international distribution numbers for a jumbo Pfandbrief since last summer, placing around two-thirds of its Eu1.5bn long three year public sector backed deal outside Germany when the issue was priced on Friday.

BayernLB is expected to price a new three and a half year benchmark sized public sector Pfandbrief today, after opening books yesterday (Thursday) after the European Central Bank's decision to hold rates stable. The leads were able to increase the size of the deal after books were left open overnight for orders from Asia.

The Dexia group on Wednesday demonstrated the diversity of funding options it enjoys, adding a jumbo Pfandbrief to its issuance this year. The Eu1.5bn two year issue nevertheless showed the limits of what issuers can achieve in today's market. (Updated to include quotes)

CIF Euromortgage successfully priced its Eu1bn two year obligations foncières at 4bp over mid-swaps yesterday (Thursday), the middle of guidance. The leads said that the new issue had represented a real test of CIF’s resilience.

CIF Euromortgage has opened the books on a benchmark sized two year obligations foncières issue. Market participants described the guidance of 3bp-5bp over mid-swaps as necessary to catch the attention of investors in light of recent senior unsecured deals.

The Dexia group yesterday (Wednesday) demonstrated the diversity of funding options it enjoys, adding a jumbo Pfandbrief to its issuance this year. The Eu1.5bn two year issue nevertheless showed the limits of what banks can achieve in today’s market.

The book has been closed on Dexia Kommunalbank’s Eu1.5bn two year public sector Pfandbrief this morning, with pricing set to follow this afternoon. The deal maintained the Pfandbrief’s strong performance by avoiding pricing above mid-swaps on the back of a strong order book.

Danske Bank yesterday (Monday) afternoon increased the size of its euro jumbo debut from Eu1bn to Eu1.25bn, in contrast to its decision earlier this year to eschew international issuance for more attractive domestic funding. German issuers are seen among the likely candidates to add further supply.

Danske Bank has closed the books for the first euro denominated Danish jumbo covered bond, a two year deal backed by non-Danish mortgages marketed at guidance of the mid-swaps plus 10bp area.

Intesa Sanpaolo has taken a step towards covered bond issuance, signing a contract to transfer Eu8bn of residential mortgages into a special purpose vehicle to issue MBS that are expected to be used as collateral for covered bonds this year.

Caisse de Refinancement de l’Habitat only launched its first true jumbo six months ago, but this year has been the biggest issuer of benchmarks in the covered bond market. The Cover spoke to chairman and CEO Henry Raymond about the issuer’s new profile and strategy, and how the growing number of French covered bond issuers will affect their use of CRH.

With the primary market shut to new issues tap dancing looks set to come back into fashion. Dexia Municipal Agency and Münchener Hypothekenbank have led the revival over the last week, with both increasing outstanding public sector deals.