Europe

Caisse de Refinancement de l’Habitat became the fifth French issuer of the new year to price a benchmark covered bond yesterday (Thursday), having originally planned to print next week according to a syndicate official at one of the leads.

Nationwide building society has amended its Eu45bn euro covered bond programme to allow the issuance of Namensschuldverschreibung, registered bonds issued under German law.

Lloyds TSB today priced a Eu750m 12-year UK covered bond as much as 10bp outside initial guidance at mid swaps plus 150bp –yielding a juicy 4.875%, via joint leads Lloyds TSB, Natixis, UBS and UniCredit.

Royal Bank of Scotland launched a Eu1bn seven year transaction that leads BNP Paribas, ING, RBS and UBS priced at 125bp, the middle of guidance.

The covered bond market has experienced its busiest ever week with as many as 15 deals pricing, giving a grand total of about Eu19bn over the holiday shortened week.

Barclays Bank yesterday (Wednesday) priced a Eu1bn 10-year via joint leads Barclays Capital, Commerzebank, Danske, Lloyds TSB, Natixis and Santander. Books opened at 10am on Wednesday before closing just three and a half hours later with an oversubscription of 1.3 times.

Compagnie de Financement Foncier yesterday (Wednesday) priced a Eu1bn five year obligations foncières issue at 57bp over mid-swaps, in line with guidance of the high 50s over area, via leads Commerzbank, Deutsche Bank, HSBC and Natixis.

ABN Amro sold a Eu1.25bn seven year transaction yesterday (Wednesday), which leads ABN, BNP Paribas, Crédit Agricole and DZ Bank priced at 70bp over mid-swaps.

The iTraxx senior financials is trading wider ahead of the release of the EC’s latest draft consultation paper, which is likely to confirm suspicions that an EU wide initiative on bank bail-ins is going to be hard-coded into regulation.

GCE Covered Bonds has closed books on a Eu1.25b four year transaction, which leads Crédit Agricole, ING, Natixis and UniCredit priced at 60bp over mid-swaps, the middle of guidance.

Santander priced what was possibly one of the more challenging deals of the week, a Eu1bn five year via leads Barclays Capital, Citgroup, Goldman Sachs, LBBW and Santander.

Crédit Agricole yesterday (Wednesday) priced a Eu1.5bn 10-year covered bond at the tight end of initial guidance at mid swaps 73bp via leads Crédit Agricole, Deutsche Bank, ING, Natixis and Santander.