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Denmark

  • Denmark’s mortgage banks will be auctioning around Dkr550bn (Eu73bn) of covered bonds over the course of the industry’s annual December auctions, almost twice the amount sold through the auctions last year. But demand is “huge”, said one analyst familiar with the auctions.
  • Danske Bank took advantage of limited long dated supply and what a spokesperson for the bank said was an unusual position among Nordic issuers to launch the first 10 year euro benchmark from the region yesterday (Wednesday), a Eu1.25bn issue.
  • Danske Bank is pricing the longest dated euro benchmark from the Nordic region at the tight end of guidance this (Wednesday) afternoon after the transaction met with a strong reception.
  • Moody’s yesterday (Thursday) downgraded DLR Kredit’s issuer rating from A1 to A3 under the rating agency’s new methodology for rating financial institutions that specialise in issuing covered bonds on behalf of an owner bank or a group of banks.
  • Danske Bank yesterday (Wednesday) issued a Nkr800m (Eu95m) fixed rate note to complete its Norwegian krone follow-up to a Eu1.25bn six year euro benchmark it sold last Wednesday.
  • Danske Bank on Friday issued a Nkr1.5bn (Eu178m) five year floating rate note as a follow-up to a euro benchmark priced on Wednesday.
  • Danske Bank priced a Eu1.25bn six year covered bond in the middle of guidance of the 45bp over area yesterday (Wednesday). A tighter trade would have been possible, said a syndicate official at one of the leads, but with a slightly weaker tone to the market the leads did not want to jeopardise the issue’s chances of performing in the secondary market.
  • A Eu1bn five year cédulas hipotecarias for Banco Bilbao Vizcaya Argentaria priced at the wide end of guidance could signal a welcome leveling of the balance of power between investors and issuers in the covered bond market, according to one banker this (Wednesday) morning. Meanwhile Danske is in the market with a new issue, National Bank of Greece has completed the first Greek benchmark, and we include here a wrap-up of some distribution statistics from earlier in the week. [Updated to correct BBVA pricing.]
  • Danske Bank has mandated BNP Paribas, HSBC and UniCredit to manage a new issue alongside itself. The banks are in discussion with clients about a potential six year transaction, said a syndicate official at one of the leads.
  • Covered bonds made a comeback in the Swiss franc market this week, as investors reached for a highly rated asset class that, unlike other triple-A product, still offers a spread above mid-swaps.
  • In this roundtable discussion, sponsored by Danske Bank and Nykredit, leading market participants – including issuers, investors and the Danish central bank – examine how Denmark has coped through the crisis and what the future holds for the country’s covered bond market.
  • Moody’s on Friday placed BRKkredit’s covered bonds and Nykredit Realkredit’s junior covered bonds on review for downgrade.