DekaBank

Deal expected to be priced after multi-week marketing period

DekaBank's sub-benchmark success shows investors are there, but issuers are unwilling to follow

◆ First syndicated covered bond since early July almost four time covered ◆ Deal lands tight but still offers SSA pick-up ◆ RFPs circulate as pipeline builds

◆ Issuer raises €1.5bn supported by nearly €10bn of orders ◆ Though some see higher NIP than usual paid for that tenor ◆ Deka leaves slim premium as other, less frequent borrowers prepare senior opco deals

◆ Hesse prints largest European regional green bond ◆ ESM builds 'massive' book ◆ CDP tightens pricing by 6bp

◆ IBB, Saxony-Anhalt, AFL price deals ◆ One trade "accelerated" ahead of cramped market ◆ All notes price tightly

◆ Deals offer pick-up to KfW ◆ Saxony offers 1bp of new issue premium ◆ BayernLabo prices tight

◆ Hamburg prices with 1bp of NIP ◆ Länder orderbooks growing ◆ More deals to follow

◆ Backlog of German issuers looking to print ◆ State set to print while reforms put to vote ◆ Lower Saxony covers deal well

◆ Deal highlights Länder spread journey ◆ No price tightening ◆ Priced off KfW with minimal NIP

◆ Not covered but not uncommon ◆ Prices around 2bp through fixed rate curve ◆ More German state supply expected

◆ Prices 15bp through peer ◆ Fair value not easy to calculate ◆ IFB Hamburg prints too