Europe

Several foreign banks are closely investigating the possibility of opening a bank in Germany as a prelude to being able to issue Pfandbriefe, an endeavour that has become more attractive as a result of a funding advantage that the German covered bond product has gained over the past several years, Jens Tolckmitt, chief executive of the Association of German Pfandbrief Banks, told The Cover.

Standard & Poor’s yesterday (Wednesday) upgraded mortgage covered bonds issued by Portugal’s Banco BPI from A+ to AA, on stable outlook, because of improvements in the programme’s cash flow profile and higher overcollateralisation.

The first publicly announced covered bond mandate since the middle of July hit the screens today (Wednesday), with Norway’s Terra Boligkreditt announcing that it has hired banks to carry out investor meetings. And despite a lack of other public plans, syndicate bankers are eying next week for the resumption of new issue activity.

Fitch affirmed public sector-backed Pfandbriefe of Düsseldorfer Hypothekenbank at AAA yesterday (Tuesday), and removed them from Rating Watch Negative, following an annual review of the programme.

Standard & Poor’s yesterday (Monday) affirmed under its revised rating methodology public sector-backed covered bonds issued by Ireland’s Depfa ACS Bank at AA, on stable outlook, and removed them from CreditWatch developing.

Standard & Poor’s has cleared at AAA, on stable outlook, mortgage covered bonds issued by Swedbank Mortgage and removed them from negative review.

Standard & Poor’s is assessing the possible impact on Greek covered bonds of a Greek personal bankruptcy law that will enter into effect at the beginning of September, the rating agency said on Friday.

Martti Porkka is stepping down as managing director of Aktia Real Estate Mortgage Bank in the autumn and will leave the Finnish covered bond issuer next year.

Issuers of six out of eight German mortgage Pfandbrief programmes that Fitch has had on negative review have provided detailed information about commercial mortgages in their cover pools that the rating agency requested, while two have not yet done so.

Bayerische Landesbank this (Wednesday) morning increased a 2014 public sector-backed Pfandbrief by Eu125m, becoming the second German issuer this week to price a tap through mid-swaps.

Münchener Hypothekenbank today (Monday) priced a Eu125m tap of a June 2015 benchmark mortgage Pfandbrief through mid-swaps.

Standard & Poor’s affirmed at AA+, on stable outlook, its rating of Deutsche Pfandbriefbank’s public sector-backed covered bonds on Friday and removed them from CreditWatch developing, where it had placed the covered bonds on 16 April after cutting them from AAA to AA+.