Europe

DnB Nor Boligkreditt debuted in the US market with a $2bn (Eu1.43bn) five year issue on Wednesday that gave it tighter pricing than was available in euros, but the issuer told The Cover that strong US demand was the most pleasing aspect of the benchmark.

The first obligations foncières issued by Axa Bank Europe SCF will be backed by a Eu1.5bn senior tranche of an RMBS of Belgian residential mortgages originated by its parent, Brussels-based Axa Bank Europe. Bankers at arranger BNP Paribas said that this provided the European retail banking arm of French insurance group Axa with a sensible way of issuing in the absence of Belgian covered bond legislation.

Italy’s UBI Banca sold a Eu500m five year covered bond yesterday (Thursday) after coming up against reduced demand for obbligazioni bancarie garantite issues and for its credit following concentrated supply from the country, but nonetheless attracted quality orders, according to a syndicate banker at one of the leads.

Moody’s yesterday (Thursday) placed on review for possible downgrade mortgage covered bonds issued by AIB Mortgage Bank, Bank of Ireland Mortgage Bank and EBS Mortgage Finance. Fitch today said that a downgrade of Ireland’s sovereign rating will not have an immediate impact on its ratings of Irish covered bond programmes.

Moody’s put the Aa3 rating of public sector covered bonds issued by Depfa ACS Bank on review for downgrade today (Thursday) because of a cut in the issuer’s rating from A3 to Baa3 last Friday.

Standard & Poor’s yesterday (Wednesday) affirmed at AAA mortgage backed covered bonds issued by Sweden’s Länsförsäkringar Hypotek under its revised rating methodology.

Italy’s UBI Banca will today (Thursday) price a Eu500m five year issue on the back of modest demand, while DnB Nor Boligkreditt yesterday sold its first dollar benchmark covered bond and Canadian Imperial Bank of Commerce priced its first covered bond in the Kangaroo market.

Justin Fox will be leaving Nationwide Building Society, where he has been head of treasury markets, in the New Year.

Sweden’s Skandinaviska Enskilda Banken priced its first seven year euro benchmark covered bond yesterday (Wednesday), a Eu1bn maximum deal that the issuer said cleared at the re-offer spread “very handsomely”.

Moody’s downgraded Raiffeisenlandesbank Niederoesterreich-Wien from Aa3 to A1 yesterday (Wednesday) after carrying out stress tests on the bank’s earnings, assets and capital.

Spain’s Unicaja was keen to use the launch of a cédulas hipotecarias issue this week as an opportunity to engage with investors on issues facing the country’s financial system and to highlight the savings bank’s individual story, an official at the issuer told The Cover.

Cato Baldvinsson, who has been head of group treasury at Danske Bank, will be retiring next July, and a new head has been appointed.