Europe

UniCredit sold a Eu1bn public sector Pfandbrief yesterday (Wednesday), which leads Commerzbank, Natixis, NordLB, RBS and UniCredit priced at mid-swaps flat, after going out with guidance of the 2bp over area.

DnB Nor Boligkreditt came to market yesterday (Tuesday) with a Eu2bn five year transaction, which leads Barclays Capital, Citibank, Goldman Sachs and HSBC priced at 32bp over mid swaps, in line with guidance of the low 30s area.

Spain's Banco Bilbao Vizcaya Argentaria SA yesterday successfully priced the first Spanish covered bond since early November when Caja Madrid tapped the market. It was therefore “important they make sure that they did so in a preferable way,” a syndicate official at one of the leads explained.

BNP Paribas home loan bank attracted over 100 accounts to participate in a Eu1.75bn 10 year issue yesterday (Tuesday), which leads BNP, Natixis, RBS and UniCredit priced at 65bp over mid swaps.

Primary issuance continues to power ahead with five deals pricing yesterday and a further five deals expected to price this afternoon. Several more have been announced but, in a possible sign of things to come, two have been postponed and there is speculation that another is struggling.

ING sold a Eu1.25bn seven year transaction yesterday (Tuesday), which priced at 60bp over mid-swaps, in line with guidance, via leads Barclays, ING, Natixis and UniCredit.

After a very quiet December, market participants are not surprised to see a strong start to the primary market in the New Year, with one deal already priced and as many as seven others on the way.

Germany’s Münchener Hypothekenbank reopened the covered bond market on Monday, pricing a Eu1bn five year mortgage backed Pfandbrief at 10bp over mid swaps, the tight end of guidance, via leads Barclays, DZ Bank, LBBW, UniCredit and WGZ Bank.

CIF Euromortgage sold a Eu250m increase of an outstanding Eu700m June 2020 issue today (Monday), which leads BNP Paribas, HSBC and Natixis will price at 65bp over mid swaps the middle of guidance according to a syndicate official involved in the transaction.

Moody’s has placed on review for possible downgrade the covered bonds issued by six Greek banks, highlighting that timely payment indicators of the various programmes are “very improbable”.

Caisse de Refinancement de l’Habitat yesterday (Thursday) priced a significantly upsized Eu500m increase of its Eu500m September 2022 issue at 67bp over mid swaps via sole lead HSBC.

German 10-year Bunds are correcting slightly higher this (Friday) morning, but a long term trend of rising yields that has been in place since August remains intact. As a result, real money accounts are increasingly hitting their target returns –a driving factor behind a hugely upsized increase of a tap for Caisse de Refinancement de l’Habitat.