Covered Bonds - All Articles

  • Electronic trading platforms being fine-tuned

    The market related issues working group of the European Covered Bond Council yesterday (Thursday) heard presentations from three potential providers of electronic trading platforms for the market.

    • 30 Jan 2009
  • Ukrainian covered bonds pulled

    Bank Khreschatyk has cancelled its Hr70m (Eu7.1m) covered bonds.

    • 30 Jan 2009
  • Investors embrace Commerz unguaranteed venture

    Commerzbank will today (Friday) price the first unguaranteed senior unsecured bond from a German issuer since the collapse of Lehman Brothers.

    • 30 Jan 2009
  • Parent supports Clydesdale ratings

    Fitch yesterday (Thursday) affirmed Clydesdale’s issuer default rating at AA-, stable outlook, but placed the bank’s individual rating on negative review.

    • 30 Jan 2009
  • All non euro & dollar covered bonds - 2008 standings

    • 30 Jan 2009
  • Achmea covered bonds safe after remedy period

    Standard & Poor’s yesterday (Thursday) affirmed its AAA rating of Achmea Hypotheekbank’s covered bonds after the Dutch bank took remedial action necessitated by changes to the rating agency’s counterparty methodology.

    • 30 Jan 2009
  • Declining profitability triggers ING cuts

    ING’s release of preliminary results for the fourth quarter of 2008 prompted Moody’s and Fitch to yesterday (Wednesday) downgrade the Dutch bank’s credit rating.

    • 29 Jan 2009
  • EBS slips into triple-B territory

    Fitch yesterday (Wednesday) downgraded EBS Building Society’s senior debt rating from A to BBB+. The rating action dragged down the support rating of EBS’s covered bond issuing subsidiary, EBS Mortgage Finance, from 1 to 2 to reflect the change in its parent's rating.

    • 29 Jan 2009
  • Barclays rating drops, covered bonds safe

    Fitch yesterday (Wednesday) said that the AA rating of Barclays Bank is no longer justifiable given the risks and earnings volatility the bank is exposed to via Barclays Capital.

    • 29 Jan 2009
  • Fitch gives all clear to Unicaja, Caja Murcia

    Fitch yesterday (Wednesday) announced positive rating news for two of Spain’s savings banks.

    • 29 Jan 2009
  • Skinny RZB OK`d, but La Caixa under fire

    Government guaranteed issues from La Caixa and Raffeisen Zentralbank yesterday (Wednesday) were both priced tightly in terms of their premiums versus their respective sovereigns. But while this did not get in the way of the Austrian bank’s transaction, syndicate officials away from the Spanish deal have criticised the spread.

    • 29 Jan 2009
  • S&P lowers BNPP despite systemic importance

    Standard & Poor's yesterday (Wednesday) downgraded BNP Paribas’ rating from AA+ to AA, on negative outlook. The new rating is likely to remain until there are “clear signs that the worst is over”, said the agency.

    • 29 Jan 2009
  • UniCredit Jelzálogbank programme gets first rating

    Moody’s yesterday (Tuesday) assigned a definitive Aa3 rating to the covered bond programme of UniCredit’s Hungarian arm, Jelzálogbank.

    • 28 Jan 2009
  • Development of Pfandbrief law progresses smoothly

    Proposed amendments to the Pfandbrief Act were met with approval during a hearing on the draft law on “the further development of Pfandbrief legislation” last Wednesday.

    • 28 Jan 2009
  • One notch lift for Marfin Egnatia

    Moody’s yesterday (Tuesday) upgraded Marfin Egnatia Bank’s rating to match that of its parent bank, Marfin Popular Bank.

    • 28 Jan 2009
  • Spanish GG opens amid modest supply

    Activity in the euro government guaranteed bank debt market has picked up since Monday’s Swedbank issue, but only moderately. And despite an improvement in market sentiment, covered bond banks are keeping investors waiting for a follow-up to last week’s jumbo from Crédit Agricole.

    • 28 Jan 2009
  • Principality’s debut continues pass-through trend

    Only a few days after receiving approval for its Eu3bn covered bond programme, Principality Building Society yesterday (Tuesday) executed its first deal, a £700m (Eu753m) January 2010 bond.

    • 28 Jan 2009
  • Dexia OF triple-A safe after parent's helping hand

    Moody’s on Friday concluded its review of Dexia Municipal Agency's obligations foncières by affirming their Aaa rating, with greater transparency forthcoming from both the issuer and the rating agency.

    • 27 Jan 2009
  • Majority HRE stake to up government Pfandbrief link

    The German government is understood to have agreed to take a majority stake in Hypo Real Estate of 50% plus one share. The move underlines the government’s commitment to the Pfandbrief, and should help reinforce it, too, said covered bond analysts.

    • 27 Jan 2009
  • Principality covered bond programme finalised

    Principality Building Society has set up a covered bond programme.

    • 27 Jan 2009
  • All covered bonds - 2008 standings

    • 27 Jan 2009
  • Will end investors pass on pass-throughs?

    After Norwich & Peterborough Building Society and Newcastle Building Society recently launched the first UK covered bonds to include a partial pass-through structure, Fitch suggested last Thursday that similar structures may have a role to play outside deals designed to access central bank funding. But other market participants are less certain that investors can be won over by them.

    • 26 Jan 2009
  • Moody's bearish on ratings despite issuers' efforts

    Moody's today (Monday) warned that there will be further negative pressure on covered bond ratings this year as the challenges they faced in 2008 continue unabated.

    • 26 Jan 2009
  • Established name opens GG week, inaugural awaited

    The market got off to a relatively quiet start today (Monday), with only one issuer tapping the government guaranteed bank debt market in euros, as developments in underlying markets remain the focus. But there is talk of developments in the covered bond market later in the week.

    • 26 Jan 2009
  • Euro & dollar benchmarks excluding self led - 2008 standings

    • 23 Jan 2009
  • Moody’s decides against Eurohypo upgrade

    Moody’s yesterday (Thursday) concluded a review for possible upgrade of Eurohypo’s ratings by leaving its long term debt rating unchanged, at A1.

    • 23 Jan 2009
  • Vernadat leaves Calyon to return to Paris

    Laurent Vernadat, who was in charge of covered bond syndication at Calyon in London, has left the French bank.

    • 23 Jan 2009
  • Sovereign cuts, bank fears hit guaranteed deals

    The government guaranteed bank debt market was the juncture of two waves of negative sentiment in the markets this week, as downgrades hit the sovereign market and financial institutions suffered renewed pressure.

    • 23 Jan 2009
  • Moody’s to scrutinise Achmea’s TPI

    Moody’s yesterday (Thursday) placed on review for possible downgrade the Aaa rating of Achmea Hypotheekbank’s covered bonds.

    • 23 Jan 2009
  • Anglo Irish subsidiary opens commercial MCS segment

    Anglo Irish Mortgage Bank yesterday (Thursday) issued the debut transaction off its Irish commercial mortgage covered securities programme. The deal is also the first for the market segment.

    • 23 Jan 2009
  • BayernLB Swissie a low-key Pfandbrief comeback

    Yesterday (Wednesday) Bayerische Landesbank printed what is believed to be the first publicly sold Pfandbrief issue since Lehman Brothers collapsed. The Sfr150m (Eu100m) three year public sector backed deal also marks a return to publicly sold foreign currency issuance for covered bonds in general.

    • 22 Jan 2009
  • Euro & dollar benchmarks ex-taps - Final standings 2008

    • 22 Jan 2009
  • CA cites quality book as debut prices at 135bp

    Crédit Agricole executed its inaugural jumbo covered bond yesterday (Wednesday), a Eu1.25bn seven year deal priced at 135bp over mid-swaps. The deal is only the second jumbo since 8 September and marked a rare visit, from any type of issuer, to the seven year maturity.

    • 22 Jan 2009
  • NordLB readies guaranteed, but not SoFFin deal

    Norddeutsche Landesbank is planning to issue a guaranteed benchmark issue via Dresdner Kleinwort, DZ Bank, HSBC, Nomura and NordLB under a guarantee scheme that is backed by not the German Financial Markets Stabilisation Fund, SoFFin, but its owners, Lower Saxony and Saxony-Anhalt.

    • 22 Jan 2009
  • Fitch rates Anglo Irish’s covered bond vehicle

    Fitch yesterday (Wednesday) assigned Anglo Irish Mortgage Bank a long term issuer default rating of A-, with a stable outlook.

    • 22 Jan 2009
  • Rating agencies mildly negative on UK mutual merger

    The rating agencies have delivered their verdicts on the merger between Britannia Building Society and The Co-operative Bank, and the outlook for the enlarged mutual.

    • 22 Jan 2009
  • CGD, Totta cut in wake of sovereign downgrade

    Standard & Poor’s yesterday (Wednesday) downgraded the ratings of Caixa Geral de Depósitos and Banco Santander Totta after cutting the Republic of Portugal’s rating from AA- to A+.

    • 22 Jan 2009
  • Danes weigh up junior versus two tier borrowing

    As part of a second aid package for Danish banks, the Danish government has extended guarantees to junior covered bonds in a move aimed at protecting the outstanding covered bonds of Danish mortgage institutions.

    • 22 Jan 2009
  • Pfandbriefzentrale raises Sfr380m in two trancher

    Pfandbriefzentrale Schweizerischen Kantonalbanken priced a dual tranche bond this (Wednesday) morning in the five and 10 year tenors.

    • 21 Jan 2009
  • Euro jumbos - Final standings 2008

    • 21 Jan 2009
  • The EuroWeek Canadian Covered Bond Roundtable

    In this roundtable, representatives of Canada's leading banks exchanged their views on the prospects for covered bonds in the country, and on how Canada’s economy, banking sector and mortgage market are very different from those of its neighbour.

    • 21 Jan 2009
  • CA takes the plunge with seven year debut

    Crédit Agricole is in the market today (Wednesday) with its inaugural jumbo covered bond and only the second from any issuer since 8 September. It has been building books on the seven year deal at guidance of 125bp-135bp over mid-swaps.

    • 21 Jan 2009
  • Dexia Crédit Local cut on balance sheet concerns

    Moody’s yesterday (Monday) downgraded Dexia Crédit Local from Aa3 to A1 and assigned a negative outlook to the rating.

    • 20 Jan 2009
  • Moody’s cuts Anglo Irish on “temporary” move

    Moody's yesterday (Monday) downgraded Anglo Irish Bank Corporation’s long term debt rating from A1 to A2 after the Irish government announced it is nationalising the bank. The outlook on the rating is negative.

    • 20 Jan 2009
  • Three trading platforms to pitch to ECBC next week

    In brief: The market related issues working group of the European Covered Bond Council will be meeting on Thursday of next week (29 January) to hear presentations from three potential providers of electronic trading platforms for the market and to discuss other initiatives to improve liquidity.

    • 20 Jan 2009
  • Crédit Agricole sounding out investors for debut

    In brief: Crédit Agricole is discussing a potential debut public covered bond issue this (Tuesday) morning. Any deal would be the second jumbo this year, after BNP Paribas opened the market with the first issue since September 2008.

    • 20 Jan 2009
  • All euro & dollar benchmarks - Final standings 2008

    • 20 Jan 2009
  • Will Crédit Agricole go where others fear to tread?

    Crédit Agricole is discussing a possible debut covered bond with investors this (Tuesday) morning. However, other issuers are said to have potentially been deterred from proceeding with jumbos by the deterioration in the market around the weekend.

    • 20 Jan 2009
  • LBBW auction offers pointers on Pfandbrief pricing

    Landesbank Baden-Württemberg yesterday (Monday) resumed its recently-introduced weekly auctions of Pfandbriefe after a break over the holiday season. The results highlighted the difference in valuations of Pfandbriefe between domestic and international accounts.

    • 20 Jan 2009
  • BNPP outlook negative over capitalisation concerns

    Moody’s on Friday changed the outlook on BNP Paribas’ rating from stable to negative.

    • 19 Jan 2009
  • UK still undecided on guarantees for covered bonds

    HM Treasury has yet to decide whether or not covered bonds will form part of a planned scheme to guarantee asset-backed securities issuance announced by the UK government today (Monday), The Cover understands.

    • 19 Jan 2009
  • Fitch concludes Lloyds, HBOS review with cut

    Fitch on Friday downgraded the rating of Lloyds TSB Bank from AA+ to AA-. The long term ratings of HBOS and Bank of Scotland were also cut, from AA to AA-.

    • 19 Jan 2009
  • Anglo Irish’s ratings unmoved by nationalisation

    Fitch on Friday affirmed the long term issuer default ratings of Anglo Irish Bank Corporation at A- and the AAA rating of its covered bonds, while Standard & Poor’s today (Monday) confirmed that its A- rating of the bank remains on negative review.

    • 19 Jan 2009
  • Bank of America ratings on the slide again

    Fitch and Moody’s on Friday downgraded Bank of America NA, the sponsor bank of its covered bond programme, with the latter cutting the bank’s rating for the second time in just over a week.

    • 19 Jan 2009
  • IKB books closed after muted demand in soft mart

    The European government-guaranteed market was relatively quiet this (Monday) morning, with IKB Deutsche Industriebank’s SoFFin-backed senior unsecured debut the only new issue. However, even that failed to generate the excitement of the first three German deals, with the overall market weaker.

    • 19 Jan 2009
  • Covered bonds expected to be eligible for TGLP

    Covered bonds are expected to be eligible for government guarantees under a planned extension of the Federal Deposit Insurance Corporation’s Temporary Liquidity Guarantee Programme (TLGP) that was announced on Friday.

    • 19 Jan 2009
  • Questions over HSBC US trigger outlook change

    Fitch on Friday changed the outlook on its AA rating of HSBC Bank from stable to negative.

    • 19 Jan 2009
  • Swiss Pfandbriefbank in new 2022 tap

    Pfandbriefbank Schweizerischer Hypothekarinstitute increased its 3.375% October 2022 bond by Sfr290m on Friday afternoon.

    • 19 Jan 2009
  • Newcastle executes debut covered bond

    Newcastle Building Society has executed its first issue off a newly established Eu2bn covered bond programme.

    • 19 Jan 2009
  • The EuroWeek-DZ Bank Roundtable: Navigating Germany's Government-Guaranteed Bank Bonds

    EuroWeek, in partnership with DZ Bank, recently held a roundtable where representatives from German bank and corporate issuers and financial intermediaries detailed the key features of Germany's government guarantee scheme, managed by the financial markets stabilisation fund, SoFFin. The roundtable participants discussed expected levels, and sources, of guaranteed bank paper in 2009 and how the new asset class is expected to affect the funding strategies of domestic and international SSA borrowers in Germany.

    • 16 Jan 2009
  • Erste first with Austrian guaranteed deal, pipe grows

    Erste Bank will this (Friday) afternoon price the first Austrian guaranteed bank deal, two days after agreeing a debt issuance programme with the country’s Finance Ministry. Meanwhile a new, unique government-backed name could emerge next week.

    • 16 Jan 2009
  • Irish covered bonds still AAA, but under pressure

    The Irish government last (Thursday) night nationalised Anglo Irish Bank, after its share price had fallen sharply in recent days amid deposit withdrawals. The bank was one of three Irish covered bond issuers to be downgraded by Fitch earlier yesterday, while another’s rating was placed on negative review.

    • 16 Jan 2009
  • CIF taps to accommodate longer interest

    CIF Euromortgage followed up its Eu230m tap on Tuesday with a Eu310m increase to its Eu1.1bn 4% October 2016 obligations foncières yesterday (Wednesday) to satisfy demand for longer dated paper.

    • 15 Jan 2009
  • SNS cut by Moody’s over asset quality concerns

    Moody’s today (Thursday) downgraded SNS Bank’s rating from A1 to A2 and changed the outlook from negative to stable.

    • 15 Jan 2009
  • BayernLB, Danske GG debuts enjoy strong demand

    Bayerische Landesbank and Danske Bank have priced their first government-backed senior unsecured issues on the back of larger order books and the next deals from Germany and Denmark are said to have been mandated for launch soon.

    • 15 Jan 2009
  • HBOS takeover triggers Lloyds TSB downgrade

    Standard & Poor’s yesterday (Wednesday) downgraded Lloyds TSB Bank from AA to AA-. It affirmed the AA- and A+ rating of Bank of Scotland and HBOS, respectively, but gave them a negative outlook.

    • 15 Jan 2009
  • Two new UK programmes wrapped up

    Norwich & Peterborough Building Society has executed what is thought to be the first issue off a Eu7bn covered bond programme, a £510m (Eu565m) December 2012 floating rate note. [updated]

    • 15 Jan 2009
  • Issuers, not investors the obstacle to second jumbo

    A week on from the news that BNP Paribas was planning the first jumbo for four months, no follow-up transaction has emerged. But although no issuer has yet been prepared to pay the price to enter the market, investors, including accounts new to covered bonds, are said to be ready for a new deal.

    • 14 Jan 2009
  • Portuguese banks’ review follows sovereign action

    Standard & Poor’s today (Wednesday) placed the ratings of Caixa Geral de Depósitos and Banco Santander Totta on CreditWatch with negative implications after taking the same action on Portugal’s rating.

    • 14 Jan 2009
  • Danske opens Danish guaranteed market

    Danske Bank launched the first government-guaranteed deal for a Danish bank this (Wednesday) morning. Bayerische Landesbank opened books on a SoFFin-backed deal, while unguaranteed senior supply has reached new areas.

    • 14 Jan 2009
  • Committee to debate Pfandbrief Act amendments

    The German parliamentary Finance Committee is due to consult on the draft law on “the further development of Pfandbrief legislation” in Berlin next Wednesday. The planned amendment to the Pfandbrief Act includes new developments in several areas.

    • 14 Jan 2009
  • Negative outlook for Commerz’s Polish subsidiary

    Moody’s yesterday (Tuesday) changed the outlook of the Baa1 rating of Commerzbank’s Polish covered bond-issuing subsidiary, BRE Bank Hipoteczny, from stable to negative.

    • 14 Jan 2009
  • ATE Bank gets permission to issue covered bonds

    Shareholders of ATE Bank, Agricultural Bank of Greece, yesterday (Monday) authorised the bank’s board of directors to set up a covered bond programme worth up to Eu5bn.

    • 13 Jan 2009
  • Three joint cédulas on review for downgrade

    Moody’s yesterday (Monday) put the triple-A ratings of three series of multi-issuer cédulas on review for downgrade as a result of their exposure to Caja de Ahorros de Castilla-La Mancha (CCM) and the deterioration of the Spanish mortgage market.

    • 13 Jan 2009
  • HSH sells Eu3bn off healthy investor demand

    HSH Nordbank wrapped up its debut SoFFin-backed bond shortly before midday London time today (Tuesday).

    • 13 Jan 2009
  • New UK covered bond company established

    A company called IF Covered Bonds LLP was incorporated in the UK last Friday. The company is thought to have been established for a new covered bond programme for the Intelligent Finance division of Bank of Scotland.

    • 13 Jan 2009
  • HRE gets more breathing space

    HRE has been granted an extension of its framework guarantee from the German financial markets stabilisation fund, SoFFin, the bank announced yesterday (Monday).

    • 13 Jan 2009
  • CIF to price tap today

    CIF Euromortgage is increasing its Eu1.03bn 4.5% December 2013 obligations foncières this (Tuesday) afternoon by Eu200m-Eu300m.

    • 13 Jan 2009
  • S&P less sure on Eurohypo than Fitch

    Fitch on Friday affirmed the ratings of two of Commerzbank’s covered bond-issuing subsidiaries, on stable outlook, but although Standard & Poor’s confirmed their ratings, it left them on negative outlook.

    • 12 Jan 2009
  • Mortgage & Land Bank of Latvia covered bonds cut

    Moody’s on Friday downgraded all Latvian mortgage bonds issued by Riga-based Mortgage & Land Bank of Latvia (MLBL) from A1 to A2.

    • 12 Jan 2009
  • HSH going two tighter as Commerzbank performs

    HSH Nordbank today (Monday) opened books on a three year SoFFin-guaranteed benchmark deal at 0900 London time with guidance of 30bp over mid-swaps, which is where Commerzbank’s inaugural government-backed transaction was priced on Friday.

    • 12 Jan 2009
  • UK RMBS guarantee scheme expected soon

    The UK government is expected to announce details of its planned guarantee scheme for residential mortgage backed securities in the next fortnight. The scheme, which could also apply to covered bonds, is targeted at boosting mortgage lending.

    • 12 Jan 2009
  • BNP Paribas charms investors with comeback jumbo

    BNP Paribas wrapped up the first jumbo covered bond in four months yesterday (Thursday) afternoon, a Eu1.5bn five year at 110bp over mid-swaps. The deal affirmed the relevance of covered bonds in the post-crisis capital markets and bankers are hopeful that it will provide a cornerstone on which to build the asset class’s recovery.

    • 09 Jan 2009
  • Bank of America cut after Merrill takeover

    Moody’s yesterday (Thursday) downgraded the issuer rating of Bank of America NA, the sponsor bank of its covered bond programme, from Aaa to Aa1 and assigned a negative outlook to the new rating. The move follows the completion of the bank’s takeover of Merrill Lynch.

    • 09 Jan 2009
  • Short Pfandbriefbank tap favoured over long

    Pfandbriefbank Schweizerischer Hypothekarinstitute is tapping two bonds via Credit Suisse this (Friday) afternoon. The first will be its August 2012 at 15bp over mid-swaps and the second its October 2022 at 25bp over.

    • 09 Jan 2009
  • Commerzbank hits Eu5bn with SoFFin-backed debut

    Commerzbank today (Friday) morning priced the largest government-backed bank deal, a Eu5bn three year issue that also opened SoFFin-guaranteed issuance.

    • 09 Jan 2009
  • All non-euro and dollar covered bonds*

    • 09 Jan 2009
  • Depfa Pfandbriefe on negative review over merger

    Fitch yesterday (Thursday) placed Deutsche Pfandbriefbank AG’s public sector Pfandbriefe, rated AAA, on rating watch negative in light of the planned merger of Depfa in Germany into HRE Bank AG, and the rating watch negative on the latter’s public sector Pfandbriefe, which are also AAA rated.

    • 09 Jan 2009
  • New BNPP jumbo covered bond confounds sceptics

    BNP Paribas is today (Thursday) in the market with the first new jumbo covered bond since 8 September 2008, belying fears that the primary market could remain shut for as long as the first half of the year. While no flood of issuance is expected in the wake of the French bank’s deal, there is already talk of further supply next week.

    • 08 Jan 2009
  • Covered bonds have a role post-crisis, says Paulson

    Outgoing US Treasury secretary Henry Paulson yesterday (Wednesday) said that covered bonds could contribute to maintaining a private sector secondary mortgage market in the US. However, he added that the credit crisis will have to be resolved before a US covered bond market is likely to be established.

    • 08 Jan 2009
  • Commerzbank opens SoFFin-guaranteed market

    Commerzbank today (Thursday) opened the long-awaited SoFFin-guaranteed senior unsecured bank market, paving the way for other German lenders to tap the market with this new asset class.

    • 08 Jan 2009
  • SSAs and unguaranteed banks open for business

    The euro market burst into life today (Wednesday), with the sovereign, supranational and agency sector and unguaranteed senior bank issuance hitting the screens. The first German government guaranteed deal now looks set to emerge tomorrow, but the covered bond market remains shut.

    • 07 Jan 2009
  • Data corner: all covered bonds

    • 06 Jan 2009
  • All covered bonds*

    • 06 Jan 2009
  • SoFFin-guaranteed deals form a disorderly queue

    HSH Nordbank looks set to be the first German bank to launch a SoFFin-backed issue after the German financial markets stabilisation fund apparently gave the bank the go-ahead to launch its deal. Meanwhile there is even the first hint of jumbo covered bond supply.

    • 06 Jan 2009
  • Data corner: all benchmarks

    Data includes jumbo issues in euros and $1bn minimum issues in dollars; excludes retained deals under Dealogic criteria.

    • 06 Jan 2009
  • All euro & dollar benchmarks*

    • 05 Jan 2009
  • Lloyds issues £24bn off covered bond programmes

    Lloyds TSB in December executed £24bn (Eu25.1bn) of covered bonds off the two programmes it established last month. The 12 tranches were retained by Lloyds TSB, which led the issuance.

    • 05 Jan 2009
  • ECB OKs Danish euro collateral through VP Lux

    Euro denominated mortgage bonds issued by Danish covered bond institutions through a new Luxembourg-based central securities depositary have been approved as collateral for loans with the European Central Bank.

    • 05 Jan 2009
  • Mismatching in focus as Wüstenrot winds down pool

    Fitch has put Wüstenrot Bank AG Pfandbriefbank’s public sector Pfandbriefe on rating watch negative on concerns that the issuer may not have sufficient liquidity in its public sector cover pool to repay the respective Pfandbriefe maturing in January unless the issuer takes remedial action, the rating agency said in December.

    • 05 Jan 2009