Euro

Nordea Hypotek priced its Eu1.5bn three year new issue yesterday (Tuesday) afternoon, with the leads declaring that the issuer could find encouragement in where it had priced against other recent mortgage backed deals.

Sweden’s Nordea Hypotek opened the books on a new Eu1.5bn three year deal this morning, with initial guidance of the 12bp over mid-swaps area. The price has been fixed at 11bp over mid-swaps after leads BNP Paribas, HSBC, Nordea and UniCredit received Eu2bn of orders.

Price guidance touching the double-digits over mid-swaps for Hypo Real Estate International’s two year mortgage Pfandbrief this morning showed that even German credits cannot escape the new demands being placed on covered bond issuers today.

Bayerische Landesbank achieved one of the highest international distribution numbers for a jumbo Pfandbrief since last summer, placing around two-thirds of its Eu1.5bn long three year public sector backed deal outside Germany when the issue was priced on Friday.

BayernLB is expected to price a new three and a half year benchmark sized public sector Pfandbrief today, after opening books yesterday (Thursday) after the European Central Bank's decision to hold rates stable. The leads were able to increase the size of the deal after books were left open overnight for orders from Asia.

The Dexia group on Wednesday demonstrated the diversity of funding options it enjoys, adding a jumbo Pfandbrief to its issuance this year. The Eu1.5bn two year issue nevertheless showed the limits of what issuers can achieve in today's market. (Updated to include quotes)

CIF Euromortgage successfully priced its Eu1bn two year obligations foncières at 4bp over mid-swaps yesterday (Thursday), the middle of guidance. The leads said that the new issue had represented a real test of CIF’s resilience.

CIF Euromortgage has opened the books on a benchmark sized two year obligations foncières issue. Market participants described the guidance of 3bp-5bp over mid-swaps as necessary to catch the attention of investors in light of recent senior unsecured deals.

The Dexia group yesterday (Wednesday) demonstrated the diversity of funding options it enjoys, adding a jumbo Pfandbrief to its issuance this year. The Eu1.5bn two year issue nevertheless showed the limits of what banks can achieve in today’s market.

The book has been closed on Dexia Kommunalbank’s Eu1.5bn two year public sector Pfandbrief this morning, with pricing set to follow this afternoon. The deal maintained the Pfandbrief’s strong performance by avoiding pricing above mid-swaps on the back of a strong order book.

Danske Bank yesterday (Monday) afternoon increased the size of its euro jumbo debut from Eu1bn to Eu1.25bn, in contrast to its decision earlier this year to eschew international issuance for more attractive domestic funding. German issuers are seen among the likely candidates to add further supply.

Danske Bank has closed the books for the first euro denominated Danish jumbo covered bond, a two year deal backed by non-Danish mortgages marketed at guidance of the mid-swaps plus 10bp area.