Covered Bonds

Latest News

  • TSB extends with Sonia covered bond as CIBC lines up

    TSB extends with Sonia covered bond as CIBC lines up

    TSB Bank attracted good demand for its Sonia-linked covered bond on Tuesday, pushing out along the curve with a rare seven year that sufficiently differentiates from central bank liquidity. The extraordinarily strong sterling market conditions encouraged Canadian Imperial Bank of Commerce to follow Bank of Nova Scotia and mandate leads for another five year Sonia offering.

  • BNS issues largest Sonia covered bond as TSB mandates

    BNS issues largest Sonia covered bond as TSB mandates

    Bank of Nova Scotia (BNS) priced the first Sonia-linked Canadian covered bond in well over a year and the largest ever issued by any bank since 2014 on Monday, as TSB mandated leads to roadshow another Sonia linked covered bond.

  • Spread stability in secondary rates market ahead of EU test

    Spread stability in secondary rates market ahead of EU test

    An ECB meeting on Thursday that delivered what traders had predicted meant there was little volatility in the rates market that afternoon. With a glut of supply about to come from the EU, one trader predicted spread tightening may follow the bellwether trade.

  • UK to be torn between harmony and leadership on green regulation

    UK to be torn between harmony and leadership on green regulation

    The UK has begun the process of creating its own versions of the European Union’s sustainable finance regulations, by picking a Green Technical Advisory Group to help it draft a green taxonomy. It will face two conflicting priorities: to maximise harmonisation by staying close to EU rules; and to depart from them, for a variety of reasons including the possibility of improving on the EU’s approach.

  • First GBP update since 2018 calls for holistic disclosure

    First GBP update since 2018 calls for holistic disclosure

    The Green and Social Bond Principles organisation published the first new version of the Green Bond Principles since 2018 on Thursday. It strengthens the recommendations that issuers publish a bond framework and obtain an external review, and encourages issuers to communicate about their organisation-wide sustainability efforts, not just the assets linked to the labelled bond.

  • Covereds wobble as sensitivity on display

    Covereds wobble as sensitivity on display

    Covered bonds issued this week by SCBC and Bank of New Zealand were thinly oversubscribed and illustrated that investors are still sensitive to price, albeit that demand was good for a small green debut from Eika Boligkreditt and a tap from Oma Savings Bank.

  • Moody’s covered bond RFC bodes well for Swiss structures

    Moody’s covered bond RFC bodes well for Swiss structures

    Moody’s has published a request for comment regarding a proposed change in its rating methodology that could improve the rating stability of Swiss structured covered bonds. This could in turn give regulators another reason to consider updating the country’s legal framework.

  • Promise of ‘greenium’ pushes FIG ESG supply to record pace

    Promise of ‘greenium’ pushes FIG ESG supply to record pace

    Banks have already printed more green bonds this year than they sold in the whole of 2020 and the momentum in issuance is showing no sign of slowing. Borrowers are increasingly interested in labelling subordinated debt, amid growing evidence that such products can offer even more pricing power.

  • Renewed ECB buying and supply drip to keep squeeze on covered bond spreads

    Renewed ECB buying and supply drip to keep squeeze on covered bond spreads

    The European Central Bank bought fewer covered bonds in May than it did in any month this year so far but its portfolio still grow and may do so by even more in June. With supply still likely to be limited, this should keep prospective spread widening contained ahead of a supply glut in the sovereign, supranational and agency sector.

  • BMO follows others with covered bond Sonia conversion

    BMO follows others with covered bond Sonia conversion

    Bank of Montreal is seeking investor consent to switch from referencing Libor to Sonia on its sterling covered bond, following similar moves from other borrowers. Different calculation methods are emerging for the transition.

  • PMM: Challenging conditions advance green revolution

    PMM: Challenging conditions advance green revolution

    Issuance seized up across most markets last week with lower rated FIG and corporate deals staying clear of the primary market as many participants struggled with a combination of low subscriptions and tight spreads. Subscriptions remain deflated but concessions fell across the board as increased selectivity led to more focus on green/sustainable labels.

  • BNZ mimics Westpac with thinly subscribed covered bond

    BNZ mimics Westpac with thinly subscribed covered bond

    Bank of New Zealand (BNZ) priced an €850m seven year covered bond on Tuesday in line with the bid side of Westpac New Zealand’s deal in the same size and tenor issued last week. Although the order book was thinly subscribed, lead managers deemed the quality of orders high.

  • Eika and Oma show vital signs but covered bond recovery in doubt

    Eika and Oma show vital signs but covered bond recovery in doubt

    Eika Boligkreditt and Oma Savings Bank found good demand for their covered bonds sold on Tuesday with small deal sizes, environmental appeal and European Central Bank providing a boost. Even so, syndicate bankers were not convinced the market was back to full health.

  • Fast money faces short squeeze for SURE

    Fast money faces short squeeze for SURE

    Fast money accounts have been selling eight and nine year European Union bonds in anticipation of supply this week. But since these buyers are not expected to get much of an allocation of the fresh bonds, traders predict a modest short squeeze.

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THE EUROMONEY ECBC VIRTUAL COVERED BOND CONGRESS 2020

  • Covered bond conference 

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  • On September 9-10, 2020 Euromoney and the ECBC hosted the eighteenth annual meeting for the international covered bond market, virtually.

  • Key figures:

    • 3,030 hours spent on the platform
    • An average 4.30 hours spent on the platform by each delegate
    • 740 unique visitors from 40 countries
    • 35,000 visits to the platform

    To find out more and watch the sessions, click here 

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Roundtable

  • Covered bonds through Covid: the French issuers’ perspective

    Funding officials from Caffil, Credit Mutuel Arkéa and La Banque Postale gathered in early July to take part in a roundtable to discuss how they navigated their way through the peak of the crisis when covered bond market volatility was at its highest, and how they expect to manage funding in its aftermath, as the pernicious impact of the pandemic takes its toll.