Currencies

HSH Nordbank found little difficulty finding demand for its €500m seven year issued on Wednesday, and despite its relatively low credit standing, international demand for the bonds was strikingly high.

The job of BNP Paribas’ covered bond research analyst, Heiko Langer, has been put at risk.

Toronto Dominion Bank attracted the highest oversubscription level of any Canadian deal issued in euros this year even though it was its fourth foray into the covered bond market in 2016.

Several covered bond issuers have removed the swaps in their covered bond programmes, in the face of onerous regulatory obligations. This has improved their funding efficiency and given investors a less risky, more transparent, and potentially higher yielding product. Others should follow.

Rentenbank added to a strong run of Kauri issuance over the last week with a NZ$100m ($69.2m) five year deal on Tuesday, as another issuer lined up a trade in the format.

Favourable funding conditions should pave the way for an increasing amount of Turkish mortgage backed covered bond supply over the next few months, said Moody’s. Covered bonds will reduce Turkish banks’ asset-liability funding mismatch and help diversify their funding, the agency said.

Bank of Nova Scotia (BNS) has mandated leads for the sixth dollar benchmark of the year and the third from a Canadian bank.

Negative interest rate policies are pushing central banks to invest in emerging markets assets and currencies, according to a new survey sponsored by HSBC. The RMB, in particular, has seen a rapid growth in popularity over the past few years.

Swiss franc corporate bond issues from international borrowers have declined in the last month as foreign companies have taken advantage of more stable conditions in the euro and dollar markets, according to syndicate bankers in Switzerland.

The covered bond market was relatively unaffected by the oil price-induced credit widening on Monday morning and bankers were hopeful that, despite blackout periods, a few issuers would venture into the market this week, potentially including the first Turkish deal from Vakifbank.

Romania’s credit positive covered bond legislation has been undermined by a new mortgage law that allows borrowers to default and retroactively removes a lender's ability to take recourse against a defaulted borrower.

Westpac has confirmed it received the necessary quorum and consent to change the terms of a US dollar benchmark after it was unable to achieve the necessary quorum on the first attempt.