Euro

On Friday we analysed how lead managers’ league table performances in the first half of the year differed before and after news of the European Central Bank’s covered bond purchase programme emerged. In light of feedback we received after this was published, we would like to remind readers that the analysis focused on H1 2009 performance and did not include issuance up to and including last Friday. Today (Monday) we publish a euro jumbo league table based on year-to-date issuance.

Caixa Económica Montepio Geral will today (Friday) price its inaugural covered bond issue, a Eu1bn three year mortgage-backed deal rated Aa1/AAA.

BNP Paribas yesterday (Thursday) priced a Eu1.25bn four year covered bond, the third to be launched off the issuer’s Home Loan programme this year, inside guidance. The completion of the deal ushers in a summer break from the covered bond market for the issuer.

BNP Paribas will today (Thursday) price a four year covered bond, its fourth of the year, at the ambitious level it was said to have been targeting. Meanwhile, Berlin Hyp nipped into the market.

Total reported purchases under the European Central Bank’s covered bond programme increased almost 150% to Eu585m this (Thursday) morning, the first day on which the data was expected to include any buying in the primary market.

Several covered bond issuers are understood to be circling the market, hoping to pick off tighter levels. However, some are encountering resistance from investors, even if the European Central Bank’s purchase programme continues to underpin the market.

Ahorro Corporación Financiera is said to be preparing an AyT Cédulas Cajas issue for launch next week that could be the biggest test of the covered bond market since the European Central Bank’s Eu60bn purchase programme was announced.

SEB AG this (Tuesday) morning issued a Eu500m three year deal via UniCredit. Meanwhile, the European Central Bank has reported that Eu162m of covered bonds have been purchased under its programme.

Caixa Geral de Depósitos yesterday (Thursday) priced its debut obrigações sobre o sector público, a Eu1bn five year benchmark that achieved strong pricing inside levels initially communicated to investors. Meanwhile Crédit Agricole sized a five year issue at Eu1.25bn yesterday afternoon.

Deutsche Kreditbank on Tuesday priced its inaugural mortgage-backed Pfandbrief, a Eu500m five year deal that was nearly four times oversubscribed. However, the issuer told The Cover it has no plans to move into jumbos.

Crédit Agricole put an end to weeks of speculation that it was preparing a new issue when it launched a five year covered bond this (Thursday) morning, and appears to have been rewarded for its patience with a tight level.