Euro

SEB AG priced its Eu1bn two year public sector Pfandbrief at 7bp through mid-swaps this morning, but some syndicate officials involved warned that similar issuers should not follow the bank’s example of using the retention format, particularly if the turmoil elsewhere in the covered bond market finally infects the German product.

Canadian Imperial Bank of Commerce’s planned covered bond programme will be backed solely by mortgages insured by Canada Mortgage & Housing Corporation, making it the country’s first public sector-backed issuance, in a sign of how banks are adapting their issuance to the new market environment.

SEB AG popped up with a Eu1bn two year public sector Pfandbrief today (Thursday), showing that German issuers can even go so far as to launch retention deals in today’s market. Meanwhile, Berlin-Hannoversche Hypothekenbank’s final allocations showed that two thirds of its paper was placed domestically.

Berlin-Hannoversche Hypothekenbank shrugged off the turbulent markets to build an oversubscribed book for its mortgage backed jumbo this morning, with March looking set to follow February’s picture of a primary market where Germany and the top French names hold sway.

Caisse de Refinancement de L’Habitat (CRH) attracted a combined Eu2.8bn of orders across the two tranches of its new issue, although in common with other recent deals the short end proved more popular, with the issue only narrowly making it across the finish line at the long end.

The leads have opened the books on Caisse de Refinancement de L’Habitat’s new two tranche deal this morning at 5bp over mid-swaps for the three year tranche and 11bp over mid-swaps for the 10 year.

Sparebank 1 Boligkreditt has priced its second covered bond, a Eu1bn long three year priced at 8bp over mid-swaps this afternoon. The Norwegian issuer was reported to be pleased with the balance of funding and pricing it had achieved in successfully placing its mortgage backed bond after a period dominated by public sector deals.

Norway’s Sparebank 1 Boligkreditt has returned to the market today with a long three year benchmark sized deal. Coming after a period dominated by German sector Pfandbriefe, the deal is a further vote of confidence in the Norwegian issuer after it reopened the primary market in September 2007 with its inaugural deal.

Caisse de Refinancement de l’Habitat is to return to the market in benchmark size at both the long and short end in the near future, with the covered bond market continuing to work its way through its list of reliable issuers, following Sparebank 1 opening books today and the German public sector issuance of the last fortnight.

Depfa priced the largest benchmark for Deutsche Pfandbriefbank in seven years yesterday (Wednesday) afternoon, a Eu2bn deal that is also the German unit’s first benchmark since June 2005 and the largest public sector Pfandbrief issue so far this year.

ING Bank NV has mandated ABN Amro, Barclays Capital, HSBC and ING Wholesale Banking as joint leads for its inaugural covered bond, which will be launched after a European roadshow starting in the week of March 3. Berlin-Hannoversche Hypothekenbank is also aiming to launch a three year mortgage Pfandbrief that week.

Depfa Deutsche Pfandbriefbank has opened books on a five year benchmark sized Pfandbrief, with the public sector lender finding conditions more appropriate for issuance through its German arm than its Irish ACS unit.