Euro

Deutsche Pfandbriefbank this (Thursday) morning priced only its second jumbo since the Hypo Real Estate group was bailed out in September 2008, a Eu1bn 10 year public sector Pfandbrief launched the day after the German government’s squeeze-out of minority shareholders came into effect.

Banca Santander Totta yesterday (Wednesday) priced a Eu1bn five year mortgage-backed benchmark in the middle of guidance of the 55bp over mid-swaps area. The issuer took heed of a weaker market and did not try to force the pricing, said a syndicate official at one of the leads.

CIF Euromortgage priced the tightest 10 year benchmark of the year yesterday (Tuesday) afternoon, a Eu1.25bn obligations foncières deal that the issuer told The Cover highlighted the attractiveness of covered bonds versus government guaranteed funding.

Deutsche Pfandbriefbank launched a 10 year public sector Pfandbrief this (Wednesday) morning that is the first German supply since the issuer came to market on 8 September.

Banco Santander Totta is gathering orders for a Eu1bn five year obrigacões hipotecarias, with guidance set at the 55bp over mid-swaps area. An official book update was not available by the time The Cover went to press, but the deal “is in pretty good shape”, said an official at one the leads.

Caja de Ahorros del Mediterráneo attracted Eu1.1bn of demand for a Eu1bn five year cédulas hipotecarias this (Friday) morning, which market participants said was a success for the issuer in a difficult market. Meanwhile, another Spanish savings bank is wrapping up its roadshow.

Abbey, the Santander subsidiary that is expected to launch a new benchmark this week, is facing a fatigued covered bond market in which several recently priced deals have not performed in the secondary market, syndicate officials said today (Tuesday).

Banca Popolare di Milano returned to the market yesterday (Thursday) with its second benchmark covered bond, fulfilling a promise to investors to come to the market once a year with a deal of up to Eu1bn, the issuer told The Cover. Meanwhile Banca Carige is understood to have awarded the mandate for what could be the next Italian covered bond and would be its debut public issue.