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Latest News
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Germany, Belgium join battle over Taxonomy credibility as it goes to wire
Hectic negotiations and lobbying are going on at the European Commission about the Taxonomy of Sustainable Economic Activities, in the last day before it is due to publish the detailed rules. Key countries including Germany have changed their positions, GlobalCapital can reveal, while supporters of gas and nuclear power are digging in. Battlelines are now being drawn over the timing.
20 Apr 2021 -
PBB prices tightest Sonia covered bond
Deutsche Pfandbriefbank (PBB) issued the tightest ever Sonia-linked covered bond on Tuesday at close to fair value, with little spread sensitivity and a high quality order book. The strong result sent a positive signal to other issuers with natural sterling funding needs.
20 Apr 2021 -
BSH prices through its covered curve
Bausparkasse Schwaebisch Hall (BSH) was able to price a €500m 12 year mortgage Pfandbrief on Tuesday through fair value and showed that, in the face of mounting negative net supply which is now double last year’s total, investors are increasingly desperate for covered bonds.
20 Apr 2021 -
EC’s last minute Taxonomy change will boost energy-efficient mortgage production
The European Commission has revised the final wording of its definition of an energy-efficient mortgage in its Taxonomy of Sustainable Economic Activities. The change will greatly improve prospects for originating Taxonomy-compliant green mortgages on buildings constructed before December 2020.
19 Apr 2021 -
PBB and BSH expected to issue new covered bonds
Deutsche Pfandbriefbank (PBB) has mandated leads for the second Sonia linked covered bond of the year and Bausparkasse Schwabisch Hall (BSH) is expected with a euro 12-year deal.
19 Apr 2021 -
Caffil prices third social covered bond through curve
Caisse Française de Financement Local (Caffil) issued its third social covered bond on Monday at a slight premium to where its normal deals would have been expected to price.
19 Apr 2021 -
Canadian covered bonds find harbour in troubled times
The Covid-19 pandemic caused severe disruption to financial markets in 2020-2021. During this difficult time, the Bank of Canada and the Office of the Superintendent of Financial Institutions took a number of actions to build resilience and improve the stability of the Canadian financial system. Federally regulated financial institutions were, among other things, permitted the privilege to pledge covered bonds with the central bank, which provided access to long-term repos and benefited from preferential regulatory treatment of loans subject to payment deferrals.
16 Apr 2021 -
Post-results Scandie credit pipeline builds
A handful of borrowers are circling the Nordic markets with an eye to printing after the end of first quarter results. But the looming blackouts have not deterred every type of credit from tapping the market as a range of corporate, covered bond and financial issuers placed paper this week.
16 Apr 2021 -
Bank SLBs: the answer is staring you in the face
Progress in sustainability-linked finance for banks has flipped from glacial to dizzying with Berlin Hyp’s €500m sustainability-linked bond this week.
15 Apr 2021 -
SLB fever sweeps FIG market after Berlin Hyp debut
Banks are optimistic that sustainability-linked bonds have a bright future as part of their funding toolkits, after Berlin Hyp became the first financial institution to land a deal in the format this week. More trades are already on the way and market participants are stepping up their efforts to break down the remaining barriers for FIG borrowers.
15 Apr 2021 -
Basis swap widening helps covered bonds
A widening in the basis swap between three and six month Euribor and a recent rise in yields have improved the attractiveness of covered bonds for a proportion of investors. But for many others, bonds that trade well through swaps in the secondary market are only fit for the European Central Bank.
15 Apr 2021 -
Investors swoon at NIBC’s rare CPT
Investors wasted little time placing orders for NIBC Bank’s €500m 10 year conditional pass-through covered bond that was issued on Wednesday, reflecting that it offered the highest spread of any covered bond issued this year by any bank in core Europe. This is also likely to be a very rarely issued structure.
14 Apr 2021 -
UK covered bonds are cheap but supply catalyst needed
Although UK covered bonds are trading at their tightest levels for the last year, they still offer a decent pick-up versus some international peers. With the UK’s vaccine rollout and growth expectations showing promise, spreads may well tighten. But there is a lack of fresh supply. Some is needed to improve price discovery and catalyse performance.
14 Apr 2021 -
DZ Hyp enjoys ‘textbook’ covered bond execution
DZ Hyp raised €1bn of eight year covered bond funding flat to its curve on Tuesday in what bankers called a ‘textbook execution’.
13 Apr 2021 -
Barclays hires covered bond trader from Santander
Santander has lost a covered bond trader to Barclays, which itself is in the market for a covered bond analyst after losing two recently.
13 Apr 2021
