Euro

Dexia Kommunalbank is this (Wednesday) afternoon expected to launch the first 10 year covered bond since Caisse de Refinancement de l’Habitat at end of February, having mandated Deutsche Bank, Dresdner Kleinwort, DZ Bank and Landesbank Baden-Württemberg for the new issue.

Caixa Galicia opened books on a new cédulas this (Wednesdy) morning, and followed in Bankcaja’s lead in targeting a size of Eu500m-Eu1bn. As expected, the price guidance selected also puts it in the same space as Bancaja and Caixa Catalunya, rather than the tighter BankInter’s range, as clear tiers emerge in the Spanish primary market.

Santander Totta priced its debut covered bond this (Wednesday) morning, a Eu1bn three deal that was regarded as correctly pitched in terms of pricing, and reinforced the stability of re-offer levels in the primary market. (Updated to include issuer feedback.)

Portugal’s Santander Totta opened books this (Tuesday) morning on its debut covered bond, a Eu1bn three year deal. The manner of its execution stands in marked contrast to the new issues of the last fortnight, but the tactic appeared to have paid off with the deal fully covered by midday in London.

Norway’s DnB Nor Boligkreditt priced its new Eu2bn three year covered bond at 15bp over mid-swaps yesterday (Wednesday) afternoon. The issuer announced that it was pleased with the final size and to have continued building its curve.

Caixa Catalunya showed the Spanish market to be in rude health today (Thursday) despite launching the fourth two year deal from the country in just over a week, attracting more than Eu2.5bn of demand from some 90 accounts to put together a Eu1.75bn transaction – the largest cédulas hipotecarias since the crisis began last summer.

Bancaja came hot on the heels of BankInter yesterday (Tuesday) afternoon to price a new Eu1bn two year cédulas at 65bp over mid-swaps. The issuer declared itself pleased to have launched its first benchmark deal so soon after the market’s reopening. Despite concerns over execution, the leads said worries over the order book and an apparent lack of coordination with BankInter were refuted by the successful pricing of both deals.

Norway’s DnB Nor Boligkreditt opened books this morning on a new three year euro benchmark with pricing fixed at 15bp over mid-swaps, after shadow bookbuilding yesterday afternoon at a slightly tighter level.

BankInter continued the revival in the cédulas market yesterday (Tuesday) afternoon when it priced a Eu1.5bn two year new issue at 52bp over mid-swaps, despite a deal at almost the same time from Bancaja. Meanwhile, market participants were already lining up the next cédulas issuer.

Following the reopening of the cédulas market by Sabadell last week Spain’s BankInter has closed the books on a Eu1.5bn two year at 52bp over mid-swaps and Bancaja has set its sights on a smaller deal at wider pricing. Despite the burst of supply and apparent lack of co-ordination among the issuers, the sector is holding up and indeed offering encouragement to the wider market.

In brief: DnB Nor Boligkreditt is expected to be the next issuer into the market and is already building a shadow order book, with launch understood to be imminent.

SEB priced its Eu1bn five year public sector Pfandbrief yesterday (Wednesday) afternoon ahead of today’s continental European holidays. The deal maintained the Pfandbrief market’s “business as usual” attitude after the rescue of Düsseldorfer Hypothekenbank, although the issuer did move away from the retention system used in its last jumbo.