Euro

France’s Banque Populaire group (BFBP) finally closed the books on its new Eu1bn three year covered bond at 12.30pm London time today (Wednesday). The deal is expected to be priced this afternoon, but there have been questions raised over the level of interest from end investors.

La Caixa will be selling a Eu1bn short four year cédulas hipotecarias to domestic retail investors in the coming days at a spread of Euribor plus 10bp. The deal is believed to be the largest Spanish covered bond to be sold to end investors this year and shows cédulas issuers’ access to an investor base that is often overlooked.

France’s Banque Populaire group (BFBP) has opened the books for a new euro benchmark covered bond as it attempts to grasp the chance that CRH turned down today.

Skandinaviska Enskilda Banken has avoided being knocked off course by adverse headlines and has priced a new Eu1bn five year benchmark covered bond at 17bp over mid-swaps this morning.

After successfully placing the longest covered bond benchmark since the end of February, Dexia Municipal Agency told The Cover that while it was pleased to demonstrate the range of maturities open to it, crossing the psychological barrier of pricing in the double digits over mid-swaps to please investors cuts both ways.

Sweden’s SEB this (Monday) morning opened the books on its new five year euro benchmark, with Caisse de Refinancement de l’Habitat (CRH) happy to hold fire on its deal while it waits for SEB to complete its new issue.

Dexia Municipal Agency has priced its Eu1bn seven year public sector obligations foncières issue at 10bp over mid-swaps, taking the realistic attitude required of issuers towards pricing out to the longer end of the curve.

Terra Boligkreditt priced its first euro transaction yesterday (Thursday), its public non-jumbo deal adding a new dimension to the reopened covered bond market that was being cited as a reasonable option for even larger issuers.

Dexia Municipal Agency has opened the books on a seven year euro benchmark in the first test of demand beyond the short end of the curve since covered bond issuance picked up again early last week. And another French issuer is set to follow the obligations foncières with its own seven year issue soon.

Hypo Real Estate International’s Eu1bn two year mortgage Pfandbrief earlier this week showed the new realities facing German issuers today, but the issuer yesterday (Wednesday) told The Cover that it was not unduly concerned about the situation. Meanwhile, the HRE group is being courted by a JC Flowers-led consortium.

Norway’s Terra Boligkreditt is launching its first covered bond in euros, adding yet more Norwegian supply to the market. Sweden’s SEB has mandated banks for a new issue, but is expected to hold off until next week.

Hypo Real Estate International (HRE) priced a Eu1bn two year Hypothekenpfandbrief yesterday (Tuesday) afternoon at 9bp over mid-swaps on the back of a book dominated by domestic accounts, taking the first steps to locating the new space occupied by German mortgage backed deals.