Euro

Unión de Créditos Inmobiliarios’ has issued the first Spanish RMBS since 2007. Meanwhile, ING made its first appearance in two years with an RMBS backed by better quality collateral than many covered bonds, and with a much fatter spread.

The Romanian government has approved an update to the country’s covered bond law which will be presented to stakeholders in the near future. The draft, circulated by the finance ministry, proposed to align the current mortgage covered bond framework to better align it with other European jurisdictions.

Banca Monte dei Paschi di Siena (BMPS) could soon become the fourth bank to issue conditional pass-through covered bonds. It has announced a consent solicitation to amend the maturity structure of its existing soft bullet covered bond programme, which according to Moody’s will result in a rating upgrade.

Banco Sabadell was right to approach its possible 10 year covered bond with caution. But if it had been serious about the longer tranche, it would have shown the market a representative spread.

Yorkshire Building Society mandated leads for a roadshow on Wednesday to market a euro denominated benchmark, the issuer’s first in a year. Only two UK borrowers have launched euro benchmarks this year and bankers say a €500m deal with an intermediate maturity should have a good chance of success.

Michael Weidner, portfolio manager at Lazard Asset Management (Deutschland) GmbH in Frankfurt talks to The Cover about the recent Bund market rout, the rates outlook, what’s in store for covered bonds and how his portfolio has performed.

Muenchener Hypothekenbank returned to covered bonds for the second time this year to fill out its curve with an eight year deal. The bond size was increased following strong demand, partly driven by the recent rise in Bund yields.

Henrik Stille, covered bond portfolio manager at Nordea Investment Management in Copenhagen talks to The Cover about the fixed income rout, the rates outlook, what it means for covered bonds and how he managed to beat the index and deliver a solid return.

Muenchener Hypothekenbank announced an eight year Pfandbrief on Monday afternoon but with several data points and public holidays this week, few others are likely to follow in euros. In addition, a shaky trade by Banco Sabadell on Friday has done little to instil confidence in peripheral issuers.

Muenchener Hypothekenbank has mandated banks for an eight year mortgage bond, its second Pfandbrief this year.

Banco Sabadell ended a month long drought of periphery issuance on Friday by only just managing to print a €750m five year covered bond. A mooted 10 year never appeared.

Banco Sabadell mandated leads for a five year Cédulas Hipotecarias on Thursday and said it is exploring the possibility of a 10 year. Ambiguity over whether a long dated tranche will emerge or not reflects the view that indicative pricing on the longer bond looks ambitious.