Europe

The risk investors take in the US stock market is very high because of successive rounds of quantitative easing, an analyst says

HSH Nordbank has taken the unusual step of using a synthetic securitisation that frees up no regulatory capital at all. Instead, the credit protection provided by KfW on a portfolio of SME loans means they can now be used as collateral in HSH’s public sector Pfandbriefe — the bank’s most important source of term funding.

Standard & Poor’s has cut BNP Paribas ratings and lowered its outlook on four other French covered bonds issuers because of rising risk in the French banking system. Meanwhile, Moody’s downgraded CIF Euromortgage’s covered bonds after taking the same action on the issuer.

European stock market trading started in the green after the Flash China Manufacturing PMI figure, which came in at a 3-month high

Banca Monte Dei Paschi di Siena’s secondary covered bond spreads are holding firm following another downgrade, but Spanish spreads are weakening after their recent rally. Peripheral borrowers could still bring successful benchmarks, but compression between covered and senior levels means there is less incentive to use valuable collateral, syndicate bankers told The Cover.

Countries in CEE, as well as Greece, did the most to improve their business climates over the past year, a World Bank report shows

Fixed rate mortgages are outpacing adjustable rate lending in Denmark for the first time since 2008, according to the Association of Danish Mortgage Banks. But analysts still expect one year adjustable rate bonds to dominate the December auctions.

Preliminary data from the Bank for International Settlements (BIS) show Asian banks quickly replaced Western banks in Asia-Pacific

Currencies in emerging Europe like the Polish zloty and the Russian ruble would profit from good news in Spain, a strategist says

Norway’s Terra Boligkreditt began a week long roadshow on Monday, ahead of what could be its first ever jumbo covered bond. But the prospect of a limit on Norwegian covered bond issuance should prompt questions from investors.

Investors polled for the monthly fund managers survey are "not exactly bursting with optimism," Bank of America Merrill Lynch said

No country is immune from adverse spillovers from crises originating elsewhere, writes Dr. Prasarn Trairatvorakul, Bank of Thailand governor