Europe

Sweden’s Stadshypotek took the year’s total for dollar covered bond issuance past $10bn this week with a $1.25bn five year deal. Nordic issuers’ spreads are closing in on those of their Canadian peers and dollar covered bonds from many countries have become expensive compared to Treasuries, said Barclays analysts.

The subject of SME-backed covered bonds continues to provoke a sharp division of opinion within the industry. And it was a lively topic at the annual covered bond investor conference, held on Thursday in Frankfurt.

Emerging market stocks remain "one of the most unloved" areas of global markets, but they might stage a rally, a survey of fund managers shows

Banca Popolare di Milano’s covered bonds face a ratings cut after Moody's downgraded the bank on Thursday. Although BPM’s bonds will remain investment grade, more and more covered bonds are slipping into triple-B territory, said analysts, though structural enhancements could help stop the slide.

ING priced its tightest ever covered bond this week —inside the French sovereign curve. It demonstrated deep demand at the long end despite low yields, said bankers.

Professionals still favour traditional destinations to relocate to, despite the increasing contribution of emerging markets to global growth

ING Bank offered buyers a rare bite of Dutch covered bond supply on Wednesday and launched the country’s first euro benchmark in nine months.

Aareal Bank brought the covered bond market’s third tap of the week on Wednesday, and priced a €125m increase of a mortgage backed Pfandbrief inside mid-swaps. As investors look for more liquidity German borrowers are finding it harder to drum up demand in the private placement market and taps could take up some of the slack, said bankers.

The Spanish region of Andalucia’s controversial plans to expropriate properties and stop evictions should not affect Cédulas holders, RBS said on Tuesday. Last week the regional government of Andalucia proposed a decree law to temporarily expropriate properties from financial entities if they are about to evict the occupants.

Banco Popular Español got the primary covered bond market off to a strong start on Monday after it took advantage of the prevailing demand for higher yielding bonds with a tightly priced tap of its March 2017 bond.

Russia has embarked on a new drive to exert it influence in the EBRD region – through wealth rather than military power

Halyk Bank will hand over its profitable pension fund to be absorbed into the state system in exchange for the purchase of state-owned BTA Bank