Currencies

Kommunalkredit Austria showed the gulf between public sector covered bonds from established, legislative jurisdictions and the mainly structured mortgage issuance this week by coming out with price guidance of mid-swaps flat for a four year deal via Citi, Dresdner Kleinwort and UBS today.

Banco Espírito Santo priced its first covered bond yesterday at 20bp over mid-swaps. The Eu1.25bn three year mortgage backed deal received orders of almost Eu1.9bn, demonstrating the robust nature of the primary market and enjoying a strong secondary performance.

The books were opened for Bank of Montreal’s (BMO) debut covered bond today and by mid-morning some Eu700m of orders had been placed, with the book continuing to build. The benchmark sized, five year euro deal is being marketed with guidance in the 24bp area and has yet to be refined.

Landesbank Berlin has mandated Deutsche Bank, Dresdner Kleinwort and UniCredit for a public sector jumbo Pfandbrief issue, which is expected after a European roadshow later this month. Meanwhile, the bank’s plans to launch what would be the first structured covered bond from Germany are still live.

Deutsche Postbank has priced its first jumbo mortgage Pfandbrief at 2bp, the tight end of the 2bp-4bp guidance. Following the SEB’s success, Postbank made it a good week for debut issues with a rapid bookbuilding process and strong secondary market performance.

The market survived an early test of appetite for lengthy structured deals in Royal Bank of Canada’s (RBC) Eu1.25bn 10 year transaction, which was priced at 20bp over mid-swaps yesterday (Wednesday).

Caisse de Refinancement de l’Habitat (CRH) has priced its new two year euro jumbo and a tap of its now Eu2.81bn October 2014 deal this afternoon (Wedneday). Pricing on the jumbo was set at 1bp over mid-swaps, against guidance of plus 2bp area.

Banco Espirito Santo (BES) has mandated Barclays Capital, BES, Calyon and Deutsche Bank for its new Portuguese mortgage backed covered bond.

HSH Nordbank has priced the first jumbo shipping Pfandbrief flat against mid-swaps, at the tight end of guidance. The two year deal’s final size was fixed at Eu1bn after gathering over Eu3bn in orders.

Royal Bank of Canada (RBC) looks set to successfully re-open the long end of the covered bond market. Pricing of 20bp over mid-swaps proved enough to attract Eu1.46bn of orders, allowing the final size of the deal to be set at Eu1.25bn. Final pricing is expected this afternoon (Wednesday).

Skandinaviska Enskilda Banken AB (SEB) has priced its inaugural euro jumbo covered bond at 3bp over mid-swaps, at the tight end of the 4bp guidance. A final size of Eu1.5bn was decided on the three year deal after the bond attracted Eu4bn of orders.

Caisse de Refinancement de l’Habitat had built a book of over Eu1.5bn for its new two year jumbo today and more than Eu300m for its tap, with pricing expected tomorrow.