Euro

Toronto-Dominion launched a $2bn five year inaugural covered bond yesterday (Thursday), becoming the fifth Canadian bank to tap the dollar market with a covered bond this year. Compagnie de Financement Foncier today launched the fourth euro tap of the week, increasing its recent 15 year deal by Eu450m.

Banco Bilbao Vizcaya Argentaria yesterday (Monday) received Eu3.1bn of orders for a covered bond that was marketed at a level designed to ensure “certainty of execution”, according to bankers at the leads.

Criteria: league table includes credit for all fixed rate, public market, euro-denominated covered bonds of at least Eu500m and with at least three lead managers. *Change versus euro jumbos H1 2010 ranking.

Banco Bilbao Vizcaya Argentaria this (Monday) morning launched the first sizeable new cédulas issue in three months on the back of improved market sentiment for Spanish debt.

Bank of Nova Scotia priced a $2.5bn (Eu1.96bn) three year covered bond yesterday (Thursday) that is the second largest ever dollar covered bond and the largest fixed rate single tranche dollar issue from a Canadian bank in any format, according to data from Dealogic. In euros activity has been confined to taps.

With almost half of June’s new covered bond issues falling short of the Eu1bn jumbo requirement, the implications of Eu500m-plus issues are being grappled with by all sides of the market. Most market participants have adopted a constructive attitude toward the development, but with some investors wary of issuers’ motives, there appears to be near-unanimity on only one issue: the term “jumbolino” is not fit for purpose.

A Eu1.25bn 15 year Crédit Agricole issue yesterday (Monday) provided the market with the strong transaction that it needed following the end of the European Central Bank’s covered bond purchase programme (CBPP), a syndicate official at one of the leads told The Cover.