Euro

Bayerische Landesbank is reopening the benchmark covered bond market after the summer lull today (Thursday) with the first new jumbo Pfandbrief since the European Central Bank launched its purchase programme on 6 July. And it is doing so at levels some 20bp tighter than the last comparable transaction.

Deutsche Postbank is today (Thursday) increasing its 3.125% July 2014 debut public sector Pfandbrief issue by Eu500m at a much tighter level than where the original issue was priced on 3 July. And Caisse de Refinancement de l’Habitat is the latest French issuer to join the recent tapping activity.

Westfälische Landschaft Bodenkreditbank is today (Friday) adding Eu250m to a Eu1.25bn November 2014 public sector Pfandbrief launched on 13 May. The increase is the first jumbo covered bond supply from a German issuer this month.

La Caixa tapped into the tighter levels in the covered bond market to increase a five year cédulas hipotecarias by Eu750m yesterday (Thursday), rounding off what has been the busiest ever July for the euro jumbo market.

La Caixa is today (Thursday) tapping a Eu1.25bn five year cédulas hipotecarias it launched on 14 May well inside the level at which it was first executed.

Covered bond market participants can enjoy their summer holidays safe in the knowledge that Standard & Poor’s will not publish its updated criteria for rating covered bonds before September “at the earliest”.

In brief: Société Générale SCF yesterday (Thursday) increased its Eu1bn 4% July 2016 obligations foncières by Eu250m.

In brief: Deutsche Hypothekenbank AG Hannover Berlin yesterday (Wednesday) priced a Eu500m three year mortgage Pfandbrief.

Compagnie de Financement Foncier today (Wednesday) increased its October 2012 obligations foncières by Eu800m.

A Eu1.45bn five year AyT Cédulas Cajas issue confounded sceptics by becoming the first multi-cédulas benchmark to have been successfully placed since November 2007 yesterday (Tuesday). One market participant even went so far as to describe it as marking a return to business as usual – albeit at wider levels.

Caixa Económica Montepio Geral priced its inaugural covered bond, a Eu1bn three year mortgage-backed deal, on Friday. It was the first Portuguese jumbo without a triple-A rating from Moody’s, but the issuer told The Cover that investors did not seem overly concerned about this.

Dexia Kommunalbank today (Monday) increased its June 2014 public sector Pfandbrief by Eu500m.