Euro

Bancaja will size a three year cédulas hipotecarias launched yesterday (Monday) below its Eu1bn target and price it at the wide end of guidance, prompting some bankers to suggest that the transaction was a deal too far for the Spanish covered bond market. Meanwhile, UBS has mandated a new issue.

Banco Santander Totta negotiated an unexpected downgrade of its sovereign last week to price a Eu1bn three year obrigações hipotecárias issue yesterday (Monday), the first Portuguese benchmark covered bond in nearly three months.

Bancaja today (Monday) became the seventh Spanish issuer to tap the benchmark covered bond market in eight working days, while Portugal’s Banco Santander Totta is following through with a deal announced before Fitch last Wednesday cut its sovereign’s rating. Meanwhile, an Italian bank will soon be on the road.

Bankinter today (Thursday) launched a Eu1bn three year deal that is the seventh cédulas transaction in as many days, including taps, while a downgrade of Portugal’s rating by Fitch yesterday (Wednesday) has been an extra factor for Banco Santander Totta to consider as it approaches the market.

Banco Bilbao Vizcaya Argentaria is today (Wednesday) in the covered bond market with the week’s ninth deal, after Deutsche Postbank earlier today priced a Eu1bn 10 year Pfandbrief that took supply of Eu500m-plus issues to Eu5.2bn over the first three days of the week. Meanwhile, Portugal’s Banco Santander Totta has announced plans to tap the market.

Banco Popular Español, OTP Mortgage Bank, Swedish Covered Bond Corp, and Westdeutsche Immobilienbank are all in the market today (Tuesday) with covered bonds. Syndicate officials said that the market was receptive, although only one issue has had pricing at the tight end of guidance confirmed.

La Caixa and Banco Bilbao Vizcaya Argentaria this (Monday) morning accessed the covered bond market after Santander reopened the cédulas sector last Thursday, with market participants cautiously constructive about the prospects for yet more Spanish issuance. Meanwhile, Swedish Covered Bond Corp has announced plans to tap the market.

Three Spanish banks are said to be looking to raise funding in the covered bond market after Santander reopened the cédulas sector yesterday (Thursday).

Santander launched the first Spanish benchmark covered bond in two months this (Thursday) morning, a Eu1bn seven year cédulas hipotecarias transaction that market participants said could lay a foundation for further issuance from the country. Already, a follow-up has been mandated.

Berlin-Hannoversche Hypothekenbank will today (Wednesday) price a Eu600m six year Pfandbrief at the tight end of guidance. It takes past Eu6bn the amount of Eu500m-plus issues to have hit the market this week, coming after benchmarks for issuers such as ING Bank and Crédit Agricole.

Länsförsäkringar Hypotek fulfilled a long-established ambition of diversifying its funding sources by yesterday (Tuesday) launching an inaugural, Eu1bn five year euro covered bond, the issuer told The Cover.

Eurohypo Luxembourg yesterday (Tuesday) launched a Eu750m three year public sector lettres de gage transaction a week earlier than planned in response to an issuance window that manifested itself quickly, the issuer told The Cover.