Latest Covered Bonds news

• TD takes £1bn 'at pace' with Canada’s first Sonia-linked covered bond

  

  Toronto Dominion Bank has become only the second borrower from outside of the UK to sell a Sonia-linked covered bond, having quickly met enough orders on Monday to launch a £1bn offering in the sterling market.

  • 17 Jun 2019

• Party over for covered issuers as RBC sheds orders

  

  Royal Bank of Canada’s €1.25bn seven year issued on Wednesday dropped more orders than any covered bond has in years, ending up as one of the least subscribed deals of its size since 2011. The transaction starkly illustrated that the balance of power has shifted in favour of investors and offered a salutary lesson for ambitious issuers, writes Bill Thornhill.

  • 13 Jun 2019

• BMO reopens dollar covered bonds

  

  Bank of Montreal (BMO) has issued the first Canadian covered bond in dollars this year, raising $1.75bn of funding at a cost that was equivalent to what it would have theoretically paid in the euro market. National Bank of Canada was quick to follow, announcing a similar deal at the same starting spread.

  • 13 Jun 2019

• VUB hits sweet spot with 0.5% 10 year covered bond coupon

  

  Všeobecná úverová banka (VUB) has issued the first ever 10 year covered bond from Slovakia, thanks in large part to the high spread that ensured a 0.5% coupon — a return that investors demand — but one that is now out of reach for most European names in this tenor.

  • 13 Jun 2019

• Coventry covered enjoys strong outcome but UK execution certainty set to wane

  

  Coventry Building Society did well to raise €500m of seven year funding with demand of €1bn on Thursday, but bankers warned that investors are close to reaching their limits on UK exposure, and the next issuer cannot expect the same result.

  • 13 Jun 2019

• Rabo secures solid result in hectic covered mart

  

  Rabobank attracted good demand for a dual €2bn eight year and 20 year covered bond offering on Thursday, even though the deal was issued at the tail-end of a busy week and competed for investors’ attention in euros with Coventry Building Society and Všeobecná úverová banka (VUB).

  • 13 Jun 2019

• Rabobank and Coventry line up in covereds

  

  Rabobank is set to open order books for a two-part euro covered bond that takes advantage of the demand for higher yielding debt with the inclusion of a 20 year tranche. At the same time Coventry Building Society is planning a seven year in euros.

  • 12 Jun 2019

• Bawag bags covered demand with juicy 15 year in busy mart

  

  Austrian lender Bawag took pride of place among four covered bonds issued on Wednesday with its ultra-long deal being the most subscribed and the first to close order books. The transaction drew more demand than a much larger and barely subscribed seven year from Royal Bank of Canada and brought in twice as many orders as other deals from SP Mortgage Bank and Aareal Bank.

  • 12 Jun 2019

• FIG investors’ search for yield reaches fever pitch

  The fall in absolute yields to new record lows has heightened investors’ search for FIG bonds that offer an attractive pick-up. As a result, investors have favoured higher yielding senior non-preferred transactions from the eurozone periphery, ultra-long dated covered bonds and higher yielding central European and Asian covered bonds. By contrast, demand for lower yielding core European covered bonds, while still healthy, has begun to wane following the exuberant levels of demand witnessed in May.

  • 12 Jun 2019

• Trio of issuers line up with covered bonds

  

  BAWAG, SP Mortgage Bank and Tatra banka have all set their sights on the euro covered bond market, mandating for deals across the maturity spectrum.

  • 11 Jun 2019

• Covered bonds explode amid lower expectations

  

  Euro and dollar benchmarks issued by Nordea, Lloyds, Korea Housing Finance Corporation (KHFC) and SMBC on Tuesday was a fillip for covered bond market participants suffering through volatile credit market conditions that have caused price expectations to fall.

  • 11 Jun 2019

• Angelo Gordon hires ex-Pimco covereds, ABS investor

  

  Angelo, Gordon & Co has hired former Pimco portfolio manager Sunil Kothari as managing director, responsible for originating and executing on residential and consumer debt investments across Europe.

  • 10 Jun 2019

• Alpha Bank's restructured CPT covered bond bodes well for market return

  

  After restructuring its soft bullet programme to a conditional pass through (CPT), Alpha Bank’s covered bonds have been upgraded to Baa3, making them eligible for repo with the European Central Bank, thereby improving their appeal with investors, putting the bank in a stronger position for a return to the market.

  • 10 Jun 2019

• Covered bonds unthreatened by TLTRO III

  

  Europe’s peripheral banks are likely to make most use of the third Targeted Long Term Refinancing Operation (TLTRO III), but covered bond issuance's prospects look strong, said bankers after the European Central Bank’s meeting on Thursday.

  • 07 Jun 2019

• ECB makes hawkish TLTRO move, as new QE expected

  

  The European Central Bank will price the third instalment of its Targeted Longer-Term Refinancing Operations (TLTRO III) more harshly than expected, it revealed on Thursday. This should keep most banks using market funding. Meanwhile, expectations are rising of another round of quantitative easing, something that would boost prices of bank debt, write Tom Brown, Jasper Cox, David Freitas and Bill Thornhill.

  • 06 Jun 2019

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