Euro

DnB Nor’s Eu1.5bn three year covered bond proved a hit with investors yesterday (Wednesday), attracting Eu3.8bn of orders in three hours, enabling the leads to tighten pricing from the 3bp area guidance to 2bp over mid-swaps.

Compagnie de Financement Foncier priced its Eu1bn seven year obligations foncières issue in the middle of mid-swaps plus 3bp guidance this (Thursday) morning, in the face of the weaker tone this week and also the number of deals it has issued since September.

Compagnie de Financement Foncier opened books on a seven year benchmark this (Wednesday) morning at guidance of 3bp over mid-swaps, the same level at which Dexia Municipal Agency priced a Eu1.5bn 10 year obligations foncières issue only last week.

DnB Nor Boligkreditt’s second ever covered bond, a three year deal, sold out quickly this (Wednesday) morning, in stark contrast to its five year debut in June, which hit the market just as it was turning south.

WestLB priced its Eu1bn three year jumbo at 5bp through mid-swaps, having built a book of Eu2bn, buoyed by good demand from Asia overnight. The books were closed to European accounts yesterday (Tuesday) afternoon, but to Asian accounts this morning.

Bookbuilding on WestLB’s Eu1bn public jumbo Pfandbrief began at 9.30am CET this (Tuesday) morning and was said at lunchtime by officials at the leads to be going smoothly.

Dexia Municipal Agency this (Wednesday) morning priced its Eu1.5bn 10 year obligation foncières at 3bp over mid-swaps. The bond, due 13 November 2017, is only the second 10 year to be issued since the liquidity and credit crises.

Santander has successfully executed the first public Spanish covered bond since the liquidity and credit crisis struck, a Eu1.5bn five year deal that allayed fears that spreads in the cédulas market could widen in the face of new issuance.

Dexia Municipal Agency has built a book of Eu2.8bn for its 10 year obligation foncières issue launched this morning and pricing will be fixed at 3bp over mid-swaps and the size increased to Eu1.5bn.

CIF Euromortgage priced its Eu1.25bn April 2011 issue at 3bp through mid-swaps this morning after building a Eu2.8bn book at minus 2bp guidance yesterday (Monday) morning. But although investors were enthusiastic about the new issue, they were more demanding than ever in their credit-work and on the choice of leads.

Santander appeared to have pitched its five year cédulas hipotecarias - the first since the market closed in August - at the right spread guidance this morning, with investors responding favourably to the 13bp over mid-swaps area talk.

CIF Euromortgage quickly turned around a Eu1.25bn April 2011 obligations foncières issue this (Monday) morning and price the deal at 3bp through mid-swaps, the tightest level achieved on any jumbo since the market was re-opened.