Euro

German and Austrian covered bond issuers are expected to benefit if the Austrian government’s most recent offer for partial repayment of Heta Asset Resolution’s senior and subordinated debt is accepted by its creditors. Despite the more positive outlook, the loss of trust may take years to repair and for the time being Austrian covered bonds are unloved.

Delta Lloyd has announced a prime RMBS that is fully backed by Nationale Hypotheek Garantie (NHG) mortgage loans. Although these loans are less risky, the supply of them may fall due to new European regulations, said analysts at Rabobank.

TwentyFour Asset Management’s listed closed-ended UK Mortgages Limited fund muscled in on the UK RMBS market on Wednesday with a debut securitization of buy-to-let mortgages.

CBIC has responded to the European Commission’s consultation on covered bonds with a host of recommendations on transparency. It has requested further improvements to the European Covered Bond Council’s Harmonised Transparency Template (HTT).

The European Central Bank has stepped back covered bond purchases despite much higher supply so far this year compared to last.

NIBC Bank issued the longest ever maturing conditional pass-through (CPT) covered bond from a bank in Europe’s core on Tuesday. The granular order book and modest new issue concession suggested that market conditions have stayed strong.

NIBC has mandated leads for a 10 year conditional pass through covered bond (CPT), the longest ever seen from a Dutch bank. The issuer follows Aegon Bank which last week saw exceptionally strong demand for its €500m seven year.

Bank of New Zealand has mandated leads to roadshow its first euro benchmark in four years. It joins Westpac New Zealand and SR Boligkreditt which are also marketing deals.

UK banks Santander and TSB issued prime RMBS on Thursday and Friday last week, respectively. Meanwhile, UK Mortgages Limited has announced a third RMBS backed by mortgages originated by Coventry Building Society.

Banca Carige may follow the example of Portugal’s Montepio, which on Friday said it would restructure its covered bond programme to a conditional pass-through (CPT), resulting in a three notch upgrade. The Italian bank’s bonds were junked by Fitch on Thursday, and with access to primary markets at risk, it may copy Monte dei Paschi Siena which switched to a CPT last year.

Moody’s has talked up the positive credit aspects of Turkish covered bonds in an in-depth report which it published on Thursday. However the agency says Turkish covered bonds remain susceptible to tail event risks such as the political environment — a point which locals dispute.

Leaving the EU would harm the UK, Europe and the capital markets of both. There. We’ve said it even if you won't.