Euro

ING Bank launched the first Eu1bn-plus covered bond issue of the autumn season this (Monday) morning, with DnB Nor Boligkreditt announcing a new benchmark afterwards. At least one more mandate is expected soon, but some bankers said that the restraint being shown by issuers was encouraging.

Bayerische Landesbank this (Wednesday) morning increased a 2014 public sector-backed Pfandbrief by Eu125m, becoming the second German issuer this week to price a tap through mid-swaps.

Münchener Hypothekenbank today (Monday) priced a Eu125m tap of a June 2015 benchmark mortgage Pfandbrief through mid-swaps.

Eurohypo today (Friday) added Eu250m to a June 2015 mortgage Pfandbrief in the only euro benchmark supply this week.

Caja Madrid has played down buybacks of around Eu1.5bn of its cédulas hipotecarias that were referred to in a regulatory notice filed yesterday (Tuesday) with Comisión Nacional del Mercado de Valores, Spain’s stock market regulator.

Market conditions are conducive to new covered bond issuance – even from peripheral jurisdictions – but with the holiday season in full swing issuers may not be in a position to take advantage of any opportunities, according to syndicate bankers.

Banques Populaires yesterday (Wednesday) priced a Eu340m increase to a 2.625% June 2015 covered bond at 50bp over mid-swaps, in line with guidance.

Canadian Imperial Bank of Commerce took its covered bond funding in the US market this year to $4.25bn (Eu3.27bn/C$4.39bn) yesterday (Tuesday), increasing its two outstanding 144A issues by a combined $1bn. Meanwhile, French taps in euros continued with Banques Populaires Covered Bond.

The transfer of CajaSur’s assets and liabilities to Bilbao Bizcaya Kutxa will have a positive effect on the multi-cédulas exposed to CajaSur, and a neutral impact on those exposed to BBK, Fitch said today (Wednesday). The multi-cédulas are among 48 on Rating Watch Negative, which Fitch aims to resolve in the next two months.

The transparency of the methodology of the European stress tests and the disclosure of banks’ sovereign debt exposures they brought have been hailed as positive for the financial institutions bond markets, with Spain’s Banco Bilbao Vizcaya Argentaria taking advantage of positive sentiment to launch a senior unsecured bond today (Wednesday) close to cédulas levels.

Spain’s Bankinter will today (Monday) add Eu400m to a Eu1bn cédulas hipotecarias issue first launched in March and will price the increase at a record high spread.