Euro

The ever dwindling appetite for Spanish government-guaranteed paper was clearly evident yesterday (Monday) as Cajamar just about got a Eu1bn deal over the line, but another mandate is already out.

Skandinaviska Enskilda Banken is due to price a Eu1bn five year mortgage-backed benchmark later today (Tuesday). Market participants have been encouraged to see a jumbo from a new jurisdiction and were today working out just what the implications of the deal are for other potential issuers.

Skandinaviska Enskilda Banken is today (Friday) testing the market for a new benchmark covered bond, The Cover understands.

Eurohypo on Tuesday afternoon priced its first jumbo of the year, a Eu1.25bn five year mortgage Pfandbrief, at 100bp over mid-swaps, the tight end of 100bp-110bp over initial guidance. The issue marked the successful implementation of a three-pronged funding strategy for the Commerzbank group.

Société Générale today (Wednesday) priced a Eu1.25bn 10 year public sector obligations foncières issue after meeting with healthy demand for a deal that visited a part of the curve that has not been tapped by a jumbo since May last year.

Breaking news: Société Générale has opened books on a public sector obligations foncières issue, a 10 year deal that is the first benchmark issue in that part of the curve since ING tapped the maturity in May 2008.

Austria’s Hypo Investmentbank launched its first public sector Pfandbrief issue last Thursday, a Eu120m deal, a day after Moody’s assigned a Aaa rating to its covered bond programme.

Eurohypo is expected to price a jumbo five year mortgage Pfandbrief later today (Tuesday), after having had to negotiate a tricky price discovery process.

Caixanova got its inaugural three year government-guaranteed transaction done yesterday (Wednesday) afternoon. The Eu1bn issue via Barclays Capital, BBVA, BNP Paribas, Caja Madrid, DZ Bank and HSBC was priced at the tight end of the 85bp-90bp guidance.

Caixanova has finally opened books on its first government-guaranteed issue, albeit at the widest spread yet for a Spanish issue. Meanwhile, Dexia and Lloyds yesterday (Tuesday) set new benchmarks for size in the government-guaranteed asset class.

Dexia Crédit Local today (Tuesday) found its second visit to the government-guaranteed market easier than its first and is set to price its new issue this afternoon. Meanwhile Lloyds TSB found demand from unexpected areas in sterling and OeVAG wrapped up its four year euro.