Euro

Dexia Crédit Local is hoping to win over investors to its three-way guaranteed paper when it comes to market tomorrow (Tuesday), while OeVAG has today (Monday) been negotiating the differences in opinion on Austrian spreads.

Spanish and Dutch financial institutions are today (Tuesday) braving the government-guaranteed market after yesterday's turmoil. The two deals are coming wider than recent comparables, but are both understood to be going well.

Banco Pastor is in the market today (Friday) with a three year Eu1bn no-grow government guaranteed issue that could put the latest Spanish deal 5bp inside where La Caixa opened issuance in late January.

Bankinter yesterday (Wednesday) printed its debut government guaranteed deal, soaking up investor demand left unsatisfied by preceding Spanish transactions in the guaranteed market. Its oversubscribed book bodes well for Banco Pastor, which today (Thursday) announced that it will follow with a government-backed benchmark.

Bankinter today (Wednesday) became the fourth Spanish bank to tap the government-guaranteed market. Elsewhere there has been little activity in the financial institutions market this week, although Standard Life Bank also launched a government-backed transaction today, in sterling.

Banco Popular yesterday (Monday) became the third Spanish issuer to price a government-guaranteed transaction, a Eu1.5bn three year bond that achieved the tightest level so far for the Spanish government-backed asset class. Supply of Spanish guaranteed debt looks set to continue, with a fourth Spanish bank today (Tuesday) announcing a mandate for its debut.

Banco Popular Español today (Monday) tapped the market with its debut government-guaranteed deal, the third from Spain, and will price the paper inside the levels achieved by La Caixa and Caja Madrid.

Erste Bank yesterday (Thursday) continued this week’s trend of pricing government guaranteed issues in line with guidance, some at tighter levels than the most recent deals from the respective jurisdictions. Meanwhile a third Spanish bank is preparing to follow in Caja Madrid's footsteps.

Five new deals have been priced in the euro financial institutions market so far this week, with three banks going the guaranteed route and two unguaranteed. The pace is expected to continue, with another new mandate announced this (Wednesday) morning.

NordLB today (Wednesday) priced a Eu2bn five year bond guaranteed by the state of Lower Saxony. The deal was sold at 70bp over mid-swaps, just 5bp inside the Eu1bn five year public sector jumbo Pfandbrief issued by Landesbank Baden-Württemberg last week.

Real money demand and a strong domestic bid coupled with healthy participation from foreign investors contributed to a successful move into the unguaranteed senior debt market by Commerzbank on Friday.