Euro

A recent survey of more than 80 investors undertaken by Crédit Agricole research suggests this year’s supply is unlikely to be greatly affected by the cheap funding provided under the European Central Bank’s Targeted Long Term Refinancing Operation. But with year-to-date supply so well advanced, the weekly average stands to halve.

The bank that issued the first jumbo Pfandbrief, a transaction that sparked a transformation of the covered bond market from its parochial German roots into a globally renowned asset class, has finally been wound down.

Aegon Bank has mandated joint leads for a seven year, the fourth Dutch covered bond of the year and the second with a conditional pass-through mechanism.

After recently issuing its debut RMBS, TSB Bank, the UK bank that was spun off from Lloyds, has filed vehicles suggesting it will turn to covered bonds.

The French government is expected to unveil a draft amendment to its covered bond laws, aligning the Société de Crédit Foncier (SCF) and Société de Financement de l’Habitat (SFH) frameworks, which should mainly benefit Axa Bank.

This week's scorecard examines how a selection of French agencies are progressing through their 2016 funding programmes.

Investors derided the covered bond conditional pass-through (CPT) mechanism at the CEE Covered Bond Forum held this week in London. They said the structure had been mispriced and would give regulators a strong disincentive to intervene on behalf of noteholders.

The Asian Infrastructure Investment Bank could add its name to the growing list of public sector green bond issuers, according to its president, as a more seasoned issuer brought its longest dated bond in the format.

TSB Bank is planning to hit the market with its second UK prime RMBS deal, following its first quarter results which showed strong growth in its mortgage lending.

Germany’s WL Bank has tapped an ultra-long dated covered bond by €250m, following a similarly sized tap, also at the long-end of the curve, undertaken by Caffil earlier this week.

BRRD does not specifically link covered bonds to a particular resolution strategy. This uncertainty is less of a concern for large systemic banks, but because smaller failing banks are less likely to be resolved, their covered bonds are at higher risk of default, said Moody’s.

The European Mortgage Federation-European Covered Bond Council (EMF-ECBC) on Wednesday responded to the European Banking Authority's (EBA) December report on the Net Stable Funding Ratio and has requested special treatment for covered bond structures where the matching principle is enshrined in law.