Currencies

This week's scorecard examines how a selection of French agencies are progressing through their 2016 funding programmes.

Investors derided the covered bond conditional pass-through (CPT) mechanism at the CEE Covered Bond Forum held this week in London. They said the structure had been mispriced and would give regulators a strong disincentive to intervene on behalf of noteholders.

The Asian Infrastructure Investment Bank could add its name to the growing list of public sector green bond issuers, according to its president, as a more seasoned issuer brought its longest dated bond in the format.

The Asian Infrastructure and Investment Bank may follow other SSAs to the Kangaroo market.

SSA activity in the Kangaroo market is picking up after a move in the cross currency basis swap between Australian dollars and euros.

TSB Bank is planning to hit the market with its second UK prime RMBS deal, following its first quarter results which showed strong growth in its mortgage lending.

Germany’s WL Bank has tapped an ultra-long dated covered bond by €250m, following a similarly sized tap, also at the long-end of the curve, undertaken by Caffil earlier this week.

BRRD does not specifically link covered bonds to a particular resolution strategy. This uncertainty is less of a concern for large systemic banks, but because smaller failing banks are less likely to be resolved, their covered bonds are at higher risk of default, said Moody’s.

The European Mortgage Federation-European Covered Bond Council (EMF-ECBC) on Wednesday responded to the European Banking Authority's (EBA) December report on the Net Stable Funding Ratio and has requested special treatment for covered bond structures where the matching principle is enshrined in law.

DG Hyp priced the tightest and most oversubscribed German 10 year covered bond of the year on Wednesday. The strong result pays testimony to constructive covered bond sentiment which is being driven by prospective supply scarcity and relative value to government bonds.

A shift in a cross currency basis swap rate is behind a spurt of issuance in Hong Kong dollars, said bankers.

Deutsche Hypo mandated leads for an Aa1-rated euro-denominated eight year, only the second German covered bond in that tenor this year.