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Latest News
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CEE and Dutch covered bonds offer pockets of value
A double-digit spread over mid-swaps is still possible in covered bonds from Poland, Slovakia and Dutch conditional pass-though deals, suggesting scope for performance is strongest in these markets, said bankers on Wednesday.
20 Jan 2021 -
Sparebanken Sor draws strongest demand for sevens
Sparebanken Sor Boligkreditt’s covered bond drew more demand than competing deals issued by Berlin Hyp and Royal Bank of Canada on Tuesday, thanks to its more generous spread, the shorter duration and favourable liquidity treatment.
19 Jan 2021 -
Supervisors should pay ‘special attention’ to asset encumbrance, says EBA
Levels of asset encumbrance increased sharply in the first half of 2020, the European Banking Authority said in a report this week. It warned that roughly half of the assets eligible as collateral for central bank funding schemes are now encumbered.
19 Jan 2021 -
RBC takes size and spread with narrowly subscribed 10 year
Royal Bank of Canada issued a tightly priced €1.25bn 10 year covered bond on Tuesday attracting only just enough demand. Nonetheless, the long tenor, investor diversification, cost of funding and deal size were positives for the borrower.
19 Jan 2021 -
KEB Hana debut outing achieves stellar response
Korea’s KEB Hana Bank attracted a €2bn order book for its €500m debut covered bond on Tuesday, boosting hopes for an improvement in the secondary market performance of similar deals from South Korea that offer an outsized spread pick-up.
19 Jan 2021 -
Traders reluctant to 'chase’ covered bond spreads tighter
Even though technical factors are highly supportive for covered bonds, traders say they are unwilling to lift offers, reflecting increased anxiety about limited performance potential and an underlying concern that credit market sentiment is less sure-footed that at the start of this year.
18 Jan 2021 -
CS prioritises covered bond price over size
Credit Suisse issued a two-part covered bond in Swiss francs on Monday, choosing to limit the deal sizes in order to ensure a tight spread and low yield.
18 Jan 2021 -
BPCE finds good covered demand amid gloomier outlook
BPCE found good demand for a two-part covered bond on Monday with the bonds pricing almost flat to its curve. Even so, the near term outlook has become less certain as German lockdowns are expected to be tightened amid renewed concern over the impact on commercial mortgages secured in some Pfandbrief.
18 Jan 2021 -
MuHyp goes long in covereds
Muenchener Hypothekenbank (MuHyp) sold the longest covered bond of the year so far this week, and bankers expect more long end deals to follow.
15 Jan 2021 -
Covered bond supply optimism is misplaced
This week’s burst of covered bonds was exceptionally well received and boosted supply hopes. But even though the funding was cheap and deal execution certain, the supply outlook remains grim.
14 Jan 2021 -
People news in brief
Natixis promotes DCM bankers — Powell quits IFAD job — NatWest Markets makes Peberdy, Donaldson and Manwaring's positions permanent
14 Jan 2021 -
January snooze: bank senior market fails to excite investors
Tight valuations in euros are making it difficult for banks to impress investors with new senior trades. Issuers may have to pay up or switch focus to other asset classes to make the most of the January market.
14 Jan 2021 -
Deutsche Bahn steams into Swissies
After a near two year absence, Deutsche Bahn pulled into the Swiss franc market to issue 15 year debt with no new issue premium this week, landing inside its own euro curve.
14 Jan 2021 -
MuHyp mandates to push for longest covered bond so far
Muenchener Hypothekenbank (MuHyp) has mandated joint leads for a 20 year Pfandbrief, the longest covered bond so far this year.
14 Jan 2021 -
DNB issues most subscribed covered bond
DNB Boligkreditt issued a covered bond on Thursday that became its most oversubscribed covered bond ever, equalling the bank’s biggest ever order book. The deal, secured on green mortgages, was priced through its vanilla curve, clearly demonstrating the demand for covered bonds.
14 Jan 2021
