Euro

Optimism that the nadir of the Greek crisis has passed helped Caisse de Refinancement de l’Habitat and Eurohypo launch successful benchmark covered bonds this (Wednesday) morning.

Terra Boligkreditt has joined the list of issuers waiting to launch euro-denominated covered bonds, having announced a mandate for a European roadshow for next week.

The European Central Bank in January bought more covered bonds in the primary market than in any other month of its Eu60bn purchase programme, according to its latest monthly report on the scheme released yesterday (Thursday).

Société Générale SCF yesterday (Wednesday) priced the tightest 12 year benchmark covered bond since the onset of the financial crisis, a transaction that a lead syndicate official said showed good demand for strong names and jurisdictions despite volatility in parts of the sovereign market.

Société Générale SCF has closed the order books on a 12 year public sector benchmark that will be priced later today (Wednesday), becoming the first issuer to sell a deal this week as blackout periods and challenging market conditions have kept others at bay.

With only one publicly announced mandate for a euro issue outstanding, the market could this week experience the break that some bankers are saying it needs after last week’s peripheral sovereign spread widening.

Swedish Covered Bond Corporation took advantage of limited supply in the primary market this week, with many other issuers in blackout periods, to price a Eu1bn five year issue that extended its outstanding benchmark curve and coincides with a Eu1bn jumbo redemption next Monday (1 February).

GCE Covered Bonds, which yesterday (Tuesday) priced its second benchmark covered bond, will continue as an issuer until the BPCE group it is a part of has set up a société de financement de l’habitat (SFH) to operate under new French legislation, an official at GCE told The Cover.

Swedish Covered Bond Corporation is preparing to price at the tight end of revised guidance a Eu1bn five year issue that was more than twice subscribed, while CIBC met strong demand for the first benchmark covered bond aimed at US investors in two-and-a-half years.

Aareal Bank yesterday (Monday) priced a Eu500m five year mortgage-backed Pfandbrief at 20bp over mid-swaps, tighter than any benchmark covered bond this year.

Crédit Agricole yesterday (Thursday) priced a Eu2bn three year issue after building the biggest order book for a covered bond benchmark launched so far this year despite challenging market conditions.