Euro

Dexia Municipal Agency took advantage of its own and others’ redemptions to sell its third benchmark covered bond of the year yesterday (Tuesday), a Eu1bn five year obligations foncières issue.

DnB Nor Boligkreditt yesterday (Monday) sold the biggest five year benchmark of the year, while a Eu1bn 10 year BNP Paribas Home Loan issue attracted yield-oriented demand in a well supported covered bond market.

Dexia Municipal Agency built an order book in excess of Eu1.25bn for a five year obligations foncières issue this (Tuesday) morning, while demand for new Spanish supply was subdued. A German bank, meanwhile, is expected to firm up plans shortly that will make it the sixth issuer to tap the covered bond market this week.

Three issuers this (Monday) morning launched or tapped benchmark covered bonds in a market buoyed by an agreement over the weekend on terms of an emergency loans package for Greece. Meanwhile, Dexia Municipal Agency has mandated for a deal that could be launched tomorrow (Tuesday).

A Eu1bn five year issue for Compagnie de Financement Foncier yesterday (Thursday) wrapped up a busy two days of issuance in the benchmark covered bond market, with market participants positive about the prospects for next week’s activity. An Ibercaja mandate was yesterday added to a pipeline that includes names such as DnB Nor and Helaba.

With more than Eu4bn of benchmark issuance priced yesterday (Wednesday), there were no signs of the covered bond market slowing down after a record first quarter. And pricing at the tight end of guidance for three new benchmarks showed spreads holding up under the heavy supply.

Compagnie de Financement Foncier priced a Eu1bn five year covered bond this (Thursday) morning, while DnB Nor Boligkreditt has announced a mandate for a deal that market participants expect to be launched next week.

Spread guidance on new issues launched this (Wednesday) morning was wider than levels heard yesterday, but with re-offers ultimately fixed at the tight end of guidance, syndicate bankers were speaking of a good day for covered bonds. Meanwhile, Spanish supply emerged in the form of two taps.

Stadshypotek and Société Générale today (Tuesday) announced mandates for benchmark covered bonds that market participants said are likely to be launched tomorrow (Wednesday). At least one other issuer is said to be planning to access the market, despite a short working week and reduced investor availability due to the Easter holidays.

UBS yesterday (Wednesday) priced a Eu1.25bn 12 year issue, the biggest deal in the maturity this year. A reverse enquiry from a German insurance company was the initial spark for the transaction, according to a syndicate official at one of the leads.

Despite having fallen short of a Eu1bn target size, Bancaja completed its scheduled benchmark funding for 2010 with the launch of a Eu750m three year cédulas hipotecarias yesterday (Tuesday), an official at the savings bank told The Cover, while other Spanish issuers have yet to access the covered bond market ahead of forthcoming maturities.

UBS this (Wednesday) morning launched a Eu1.25bn 12 year transaction that will conclude what, according to Dealogic, has been the busiest quarter in the history of the benchmark covered bond market. Meanwhile, an Austrian issuer is preparing to return to the market after an absence of almost five years.