Currencies

Royal Bank of Canada (RBC) priced its debut Eu2bn five year covered bond at 10bp over mid-swaps this (Tuesday) morning, at the tight end of the 11bp over mid-swaps area guidance.

Berlin Hannover Hypothekenbank (BHH) is to tap its Eub1bn 4.125% public sector Pfandbrief due 28 March 2017, to the tune of Eu125m.

Royal Bank of Canada (RBC) has opened the books on its inaugural, five year covered bond this morning with price guidance that appears to be gaining traction among investors.

Bank of Scotland, formerly HBOS, has reopened the UK covered bond sector with its Eu2bn seven year transaction, winning plaudits for once again taking a leadership position in the market.

Millennium BCP has finally priced its Eu1bn seven year Portuguese covered bond at 11bp over mid-swaps, the middle of spread guidance.

Spread guidance of 16bp over mid-swaps for Bank of Scotland’s (formerly HBOS Treasury Services) new seven year benchmark has been well received in the first UK issue since the Northern Rock crisis struck after Nationwide had impeded HBOS’s previous attempt to reopen the sector.

Millennium BCP will close the books for its Eu1bn seven year issue at the end of today (Tuesday) and price it tomorrow after what is being seen as a slow bookbuilding process.

Millennium BCP’s latest covered bond looked in good shape this morning given that the Portuguese bank has limited the size of its seven year issue to Eu1bn.

BNP Paribas has priced its Eu2bn two year structured covered bond at mid-swaps plus 4bp. The initial price guidance was plus 5bp for the fixed size of Eu2bn and the deal has already tightened to 2bp over.

BNP Paribas is expected to price its Eu2bn two year structured covered bond today (Wednesday) at 4bp over mid-swaps.

Compagnie de Financement Foncier priced the largest ever obligations foncières issue this (Wednesday) morning, a Eu2.5bn 10 year jumbo that reopened the long end of the covered bond market.

SEB is set to swim against the tide of domestic opinion with the launch of its inaugural euro denominated covered bond in mid-November. Other Swedish issuers have favoured the strong domestic market over the new pricing levels in euros, but SEB is expecting euro spreads to tighten between now and mid-November.