Euro

Competition is becoming much fiercer in the Turkish banking sector. After years of rampant loan growth in many markets, banks will have to fight much harder to find new customers and bigger margins in the future.

Westpac New Zealand issued a comfortably oversubscribed €750m five year covered bond on Tuesday and priced at the tightest spread ever for a New Zealand covered bond. At the same time, NordLB’s Luxembourg subsidiary issued a less well subscribed €500m seven year.

BRFkredit, the Danish mortgage bank, has mandated leads for a roadshow.

Delta Lloyd Bank’s €500m Dutch RMBS deal was priced on Tuesday and benefitted from strong technical support as investors scramble for paper. The swapless bonds also feature more than usual credit enhancement as well as low risk NHG-guaranteed collateral that may soon become scarce.

Île-de-France will open books for its fourth green bond on Tuesday morning, in spite of troubling US jobs data.

The Luxembourg subsidiary of NordLB will issue its longest covered bond yet, and one that should offer a double digit return, though covered bonds issued by German banks invariably price and trade well through mid-swaps.

The New Zealand subsidiary of Westpac has mandated leads for the second five year euro denominated benchmark of the year from a New Zealand bank. The deal follows an investor roadshow that was completed last week

Several borrowers are expected to launch covered bonds next week, and though some bankers have their doubts that the market will be as busy as this week, others say that superb market conditions will tempt opportunistic borrowers to move ahead with short notice.

Dr. Louis Hagen will succeed Jan Bettink as president of the Association of German Pfandbrief Banks (vdp).

The German and Spanish issuers provided the main focus in the FIG market on Thursday, respectively pricing a €500m 10 year and a €1bn eight year, which were both easily sold.

Four covered bond borrowers are expected to price deals on Wednesday and take advantage of strong market conditions before a series of potentially market moving events later in June.

WL Bank was unable to sell a €250m nine year deal on Monday. Despite the fact it offered nearly 40bp over Bunds and a modest premium against its own curve, rival bankers described it as “stupidly expensive.”