Europe

Italy’s covered bond market will tread water in 2013 in terms of outstanding bonds, say analysts. Issuers remain at the mercy of their sovereign story and a tricky general election is due in the first quarter, but supply could surge if the outlook improves.

Norway’s Finance Ministry wants to limit the amount of assets banks can use for covered bond issuance, and could prevent those issuers from taking retail deposits, according to letters published on Wednesday. The ministry of Finance will also consider granting a banking license enabling banks to access central bank funding.

Time is running out for borrowers yet to make programme changes in advance of Standard & Poor’s new counterparty criteria, which comes into force in early January. The rating agency has placed another six programmes on review for downgrade, and warned there could be others.

The bullish outlook for emerging markets for 2013 is supported by a “return from the abyss” for the eurozone and the US housing recovery

Economic growth in emerging markets has “accelerated a little” in the fourth quarter, an economic research consultancy’s data show

A new index measuring the strengths and weaknesses of various energy systems has revealed surprises, with some emerging markets scoring high

One of the factors behind London’s “good recession” is the sharp increase in wealth in emerging markets, according to one economist

After nearly 30 years with Bayerische Landesbank (BayerLB), Peter Mittermayer, head of covered bond syndicate, will retire at the end of this week.

Société Générale’s Russian subsidiary, DeltaCredit Bank, is expected to place notes of its recently priced covered bond on Tuesday, its treasury told The Cover. It is expected to return with further deals next year as the Russian fledgling covered bond framework continues to restrict local issuers to their domestic market.

This week Commerzbank unveiled a highly rated SME structured covered bond. It offers tremendous hope for the revival of the European economy, as it suggests banks have a way of financing this crucial sector with capital market funding.

The development of the covered bond market took a leap forward this week when Moody’s and Fitch assigned a provisional double A rating to Commerzbank’s €5bn SME-backed structured covered bond programme.

BRFkredit has launched a €4bn Euro-medium term note programme with a view to tempting German investors next year with a first quarter benchmark. Until now the Danish mortgage bank had relied on domestic standalone documentation.