Euro

CIF Euromortgage priced the biggest covered bond benchmark since the collapse of Lehman Brothers yesterday (Wednesday) on the back of the strongest show of support from foreign investors for a jumbo issued out of France or Germany this year. The issuer told The Cover that the deal was a positive sign not only for CIF Euromortgage, but also for the wider market.

CIF Euromortgage will today (Wednesday) price a Eu2bn five and a half year obligations foncières transaction, the biggest new issue to hit the market this year. And another French issuer this morning tapped an outstanding benchmark.

Covered bonds are edging their way back into the Swiss franc market. As well as an appearance from Pfandbriefbank schweizerischer Hypothekarinstitute, Landesbank Baden-Württemberg sold a public sector Pfandbrief this week and Swedbank is bookbuilding for a mortgage-backed covered bond.

Buoyed by the support of investors who had been absent from the covered bond market, Banco Popular Español yesterday (Monday) afternoon priced the first jumbo since Thursday’s announcement by the European Central Bank of details of its covered bond purchase plan. And a French issuer is said to be sounding the market today (Tuesday) for a possible new issue.

Banco Popular Español has the jumbo market to itself today (Monday). The Spanish issuer is the first institution to launch a new issue after Thursday’s announcement by the European Central Bank of details of its covered bond purchase plan, with one syndicate banker saying he was surprised there was not more primary market activity in covered bonds.

Aareal Bank today (Thursday) priced a Eu500m three year mortgage-backed Pfandbrief, taking advantage of positive market conditions to launch a deal that corresponds well with its underlying cover pool.

Aktia Real Estate Mortgage Bank successfully priced a Eu600m, Aa1 covered bond this (Wednesday) morning, which bankers said highlighted the flexibility on offer in the market.

Deutsche Bank yesterday (Tuesday) priced its inaugural Pfandbrief, a Eu1bn seven year mortgage-backed benchmark, at 55bp over mid-swaps off the back of a book that was more than five times covered.

BNP Paribas priced its first public sector obligations foncières issue, a Eu1bn five year transaction, at the tight end of guidance yesterday (Tuesday) afternoon, turning its deal around quickly after laying the foundations for the debut a few months ago.

BNP Paribas will this (Tuesday) afternoon price its first public sector obligations foncières issue, a Eu1bn five year deal, at the tight end of guidance. And another French obligations foncières issuer is said to be looking at this part of the curve.

Aktia Real Estate Mortgage Bank is today (Tuesday) sounding out investors for a five year non-jumbo.