Covered Bonds - All Articles

  • NIBC first victim of new S&P covered bond criteria

    Standard & Poor’s downgraded the first covered bond programme under its revised rating methodology yesterday (Thursday), cutting NIBC’s covered bonds from AAA to AA. The rating was withdrawn at NIBC’s request. Meanwhile S&P affirmed GCE Covered Bonds’ and Société Générale SCF’s programmes at AAA.

    • 29 Jan 2010
  • ECB keeps to target path despite slip-up

    Reported purchases under the European Central Bank’s covered bond programme rose by Eu1.291bn this week to Eu33.104bn this (Friday) morning, putting the ECB just Eu16m behind an assumed target path.

    • 29 Jan 2010
  • Issuers explore US options after CIBC dollar success

    Canadian Imperial Bank of Commerce priced the first US-targeted benchmark covered bond in two-and-a-half years on Wednesday, a $2bn (Eu1.42bn/C$2.12bn) three year transaction that attracted more than $4bn of orders, and the deal is said to have generated enquiries from European issuers as to what is now feasible in the US.

    • 29 Jan 2010
  • SCBC feels its way carefully amid blackouts

    Swedish Covered Bond Corporation took advantage of limited supply in the primary market this week, with many other issuers in blackout periods, to price a Eu1bn five year issue that extended its outstanding benchmark curve and coincides with a Eu1bn jumbo redemption next Monday (1 February).

    • 28 Jan 2010
  • Fitch expected revision to lead to more downgrades

    Fitch has completed a review of 109 covered bond programmes, applying its revised assumptions for treating liquidity risk in covered bonds. The implementation of the new criteria had a more limited impact on ratings than the rating agency initially expected, Fitch said yesterday (Wednesday).

    • 28 Jan 2010
  • Irish trio hit by S&P’s worsening expectations

    Standard & Poor’s yesterday (Tuesday) downgraded Allied Irish Banks, Anglo-Irish Bank and Bank of Ireland after updating its credit loss assumptions for Irish banks and lowering its risk assessment of the country’s banking industry.

    • 27 Jan 2010
  • SCBC tighter than whispers, CIBC sells out in US

    Swedish Covered Bond Corporation is preparing to price at the tight end of revised guidance a Eu1bn five year issue that was more than twice subscribed, while CIBC met strong demand for the first benchmark covered bond aimed at US investors in two-and-a-half years.

    • 27 Jan 2010
  • GCE flies BPCE flag ahead of SFH creation

    GCE Covered Bonds, which yesterday (Tuesday) priced its second benchmark covered bond, will continue as an issuer until the BPCE group it is a part of has set up a société de financement de l’habitat (SFH) to operate under new French legislation, an official at GCE told The Cover.

    • 27 Jan 2010
  • GCE sounds right at 28bp, SCBC heads Nordic queue

    GCE Covered Bonds has closed the order books for a three year benchmark that will be priced at the tight end of revised guidance later today (Tuesday). Swedish Covered Bond Corporation could be the next issuer to follow, having announced a mandate for a five year deal.

    • 26 Jan 2010
  • UBS promotes Peter, aims for top five spot

    UBS has appointed Armin Peter head of EMEA covered bonds, debt capital markets, and declared an ambition to be among the top five banks in the business within two years.

    • 26 Jan 2010
  • Aareal’s Eu500m pre-empts redemption, suits pool

    Aareal Bank yesterday (Monday) priced a Eu500m five year mortgage-backed Pfandbrief at 20bp over mid-swaps, tighter than any benchmark covered bond this year.

    • 26 Jan 2010
  • Issuers eye second coming of covered bonds in US

    The first US-targeted benchmark covered bond for two-and-a-half years could be launched as early as today (Monday), with non-US issuers said to be testing whether US investors are ready to return to the asset class.

    • 25 Jan 2010
  • All benchmarks

    • 25 Jan 2010
  • Euro jumbos

    • 25 Jan 2010
  • Aareal opens books as pipeline quickly refills

    Aareal Bank was first into the covered bond market this (Monday) morning, opening books on a Eu500m five year mortgage Pfandbrief. Meanwhile, Groupe Caisse d’Epargne is building a shadow order book for its first benchmark since September 2008 and a handful of other issuers have announced mandates.

    • 25 Jan 2010
  • LBBW ditches S&P, as eight get Fitch RWN

    Standard & Poor’s will no longer rate Landesbank Baden-Württemberg’s Pfandbriefe or other debt after the German bank ended its contract with the rating agency.

    • 22 Jan 2010
  • CA finds recipe for success in choppy market

    Crédit Agricole yesterday (Thursday) priced a Eu2bn three year issue after building the biggest order book for a covered bond benchmark launched so far this year despite challenging market conditions.

    • 22 Jan 2010
  • S&P affirms GE OFs, 82 still on negative CreditWatch

    Standard & Poor’s has affirmed GE SCF’s covered bond programme at AAA under its new covered bond rating methodology, which leaves 82 programmes on CreditWatch negative. It also assigned a AAA rating and a stable outlook to the first issue launched by HSBC Covered Bonds (France).

    • 22 Jan 2010
  • ‘Fair’ or ‘unrepresentative’? CBIC call hits a nerve

    The Covered Bond Investor Council yesterday (Thursday) called for an end to the recent practice of building shadow order books based on price whispers, and urged a return to traditional methods.

    • 22 Jan 2010
  • Euro jumbos for other* issuers - final standings 2009

    *This league table is for euro jumbos in 2009 excluding German, French and Spanish deals, which are featured in their own league tables.

    • 22 Jan 2010
  • Second highest week’s total puts ECB back on track

    The European Central Bank reported Eu2.134bn of covered bond purchases this week, the second highest week’s total since its programme began last July.

    • 22 Jan 2010
  • Eight Pfandbriefe on Fitch RWN – too soon, says vdp

    Fitch yesterday (Thursday) placed on Rating Watch negative (RWN) the mortgage Pfandbriefe of eight German banks and maintained a negative review on another’s over what it higher risk in commercial real estate lending and limited collateral information. The Association of German Pfandbrief Banks (vdp) has called the timing of the rating action “incomprehensible”.

    • 22 Jan 2010
  • Strong Crédit Agricole three year raises hopes

    Crédit Agricole has closed the order books for a three year benchmark covered bond that will be priced at the tight end of guidance on the back of Eu3bn of orders.

    • 21 Jan 2010
  • Dexia MA’s 12 year game for yield-hunters

    Dexia Municipal Agency took advantage of a back-up in yields to yesterday (Wednesday) price a Eu1bn 12 year covered bond.

    • 21 Jan 2010
  • BNPP cut on loan quality, investment banking tail risk

    Moody’s yesterday (Wednesday) downgraded BNP Paribas’s senior debt rating from Aa1 to Aa2, on stable outlook, to capture tail risks from the bank’s investment banking operations and continuing pressure on asset quality from loan books.

    • 21 Jan 2010
  • Euro jumbos for Spanish issuers - final standings 2009

    • 21 Jan 2010
  • CBIC urges end to shadow books and price whispers

    The Covered Bond Investor Council questioned the practice of building shadow order books based on price whispers and urged issuers to return to traditional bookbuilding methods in a statement released this (Thursday) afternoon. Click through for the full statement.

    • 21 Jan 2010
  • LBBW terminates S&P contract

    Standard & Poor’s will no longer rate Landesbank Baden-Württemberg’s Pfandbriefe or other debt after the German bank ended its contract with the rating agency. The covered bond issuer is believed to be the first to have done so since S&P announced its controversial new rating methodology on 16 December.

    • 21 Jan 2010
  • Euro jumbos for German issuers - final standings 2009

    • 20 Jan 2010
  • Dexia MA goes long, Lloyds does the rounds

    Dexia Municipal Agency has launched a 12 year obligations foncières issue, the longest dated benchmark covered bond of the year, with the order books clearing the Eu1bn mark earlier this (Wednesday) morning. Meanwhile, Lloyds TSB has completed a non-deal roadshow for its covered bond programme.

    • 20 Jan 2010
  • Santander gets its Eu1bn but doesn’t fly

    Banco Santander closed the books on a Eu1bn five year cédulas hipotecarias issue yesterday (Tuesday) afternoon after five-and-a-half hours of bookbuilding, with orders only just matching the deal size.

    • 20 Jan 2010
  • All benchmarks 2010

    • 19 Jan 2010
  • Santander veers from 10s to fives, Dexia eyes 12s

    Banco Santander opened books on a five year cédulas hipotecarias with guidance of the 50bp over mid-swaps area this (Tuesday) morning, surprising market participants because a 10 year issue had initially been expected. Meanwhile, Dexia Municipal Agency is said to be preparing a 12 year benchmark.

    • 19 Jan 2010
  • S&P affirms five more covered bond programmes

    Standard & Poor’s yesterday (Monday) affirmed a further five covered programmes at AAA under its new covered bond rating methodology, taking the number of programmes that have kept their top rating to 11.

    • 19 Jan 2010
  • Euro jumbos for French issuers - final standings 2009

    • 19 Jan 2010
  • Data corner: all benchmarks

    These charts and tables provide an overview of benchmark covered bond issuance in 2009, breaking down total supply by country, maturity, and month, and also compare 2009 issuance volumes with supply in previous years.

    • 18 Jan 2010
  • Data corner: all covered bonds

    These charts and tables provide an overview of covered bond issuance in 2009, breaking down total supply by country, currency, maturity, and month, and also compare 2009 issuance volumes with supply in previous years.

    • 18 Jan 2010
  • First issuer of week urged to set a good example

    The first new mandate of the week is expected to be announced soon and its reception could give an indication as to whether or not the record pace of the past fortnight can be sustained, or whether the difficulties faced by some issuers last week will resurface.

    • 18 Jan 2010
  • First 2010 settlements fuel pick-up in ECB spending

    Buying under the European Central Bank’s Eu60bn purchase programme has picked up after a lull over the winter holidays, with this week’s reporting capturing any purchases of the first of last week’s flurry of deals.

    • 15 Jan 2010
  • CGD last to brave week, but pause could be brief

    Caixa Geral de Depósitos shrugged off Abbey’s retreat from issuance plans and weaker sentiment towards peripheral sovereigns to price a 10 year issue yesterday (Thursday) afternoon, with the order books built as Portuguese sovereign spreads gapped out. And more issuers are said to be considering coming to market next week.

    • 15 Jan 2010
  • Swedbank secures first mover advantage

    Swedbank Mortgage this week became the first issuer to price a three year benchmark covered bond this year, before two other deals followed quickly in the same maturity. The issuer told The Cover that it wanted to distinguish itself from the longer dated issuance that had dominated supply so far.

    • 14 Jan 2010
  • Three’s no crowd for UBS

    UBS yesterday (Wednesday) launched the week’s third three year in quick succession but there was still enough demand for the leads to size a Eu1.5bn deal on the back of a Eu2bn order book.

    • 14 Jan 2010
  • Euro jumbos excluding taps - Final standings 2009

    • 14 Jan 2010
  • Barclays hires Padova Hanson from RBS

    Liz Padova Hanson, who was previously head of US covered bond structuring at RBS/ABN Amro, has joined Barclays Capital as a managing director in the bank’s asset securitisation origination business in the Americas.

    • 14 Jan 2010
  • Abbey calls off issuance plans but CGD undeterred

    Caixa Geral de Depósitos is set to take Abbey’s place as the record ninth benchmark covered bond issuer this week, after the Portuguese but not the UK bank decided to brave the week’s widening market.

    • 14 Jan 2010
  • HSBC France debut successfully swims against tide

    In contrast to most of this week’s supply, the inaugural HSBC Covered Bonds (France) transaction was yesterday (Wednesday) priced at the tight end of where it had been whispered, despite being the seventh seven year of 2010 and being launched into a weak market.

    • 14 Jan 2010
  • High quality bid lifts CFF three year to Eu2bn

    Compagnie de Financement Foncier negotiated a tricky turn in the market to launch the largest three year covered bond since May 2008 yesterday (Tuesday). The issuer told The Cover that the deal’s size reflected the strong demand it encountered, especially from Asian and central bank buyers.

    • 13 Jan 2010
  • Sabadell confident despite effects of indigestion

    Banco de Sabadell on Monday returned to the benchmark covered bond market after an absence of more than a year-and-a-half. The issuer told The Cover that it announced its deal after watching the market get off to a strong start, and is confident that, after a spell of market indigestion, its issue will perform in the long run.

    • 13 Jan 2010
  • Strong market and pricing levels lure DnB Nor back

    DnB Nor Boligkreditt launched its first issue for a year-and-a-half and longest dated covered bond benchmark on Monday and the issuer told The Cover that it had accelerated its issuance plans to take advantage of the strong market reopening and pricing on offer.

    • 13 Jan 2010
  • Record ninth benchmark of the week on the way

    The benchmark covered bond market is today (Wednesday) set to break through the previous record for issuance in a week, with HSBC Covered Bonds and UBS having launched seven and three year deals, respectively, and Abbey understood to be whispering a five year issue.

    • 13 Jan 2010
  • Honeymoon over as heavy supply hits spreads

    Two issuers are understood to be building shadow order books today (Tuesday) in spite of the benchmark covered bond market having suffered its most difficult 24 hours since the flood of issuance began a week ago.

    • 12 Jan 2010
  • pbb crosses Eu1bn threshold to get the job done

    Deutsche Pfandbriefbank yesterday (Monday) built a Eu1.1bn order book for its third benchmark covered bond since the restructuring of Hypo Real Estate Group, a Eu1bn seven year public sector Pfandbrief. The level of oversubscription was not particularly high, the issuer told The Cover, but investor demand was strong enough to allow Pfandbriefbank (pbb) to hit its target.

    • 12 Jan 2010
  • Lloyds TSB joins Regulated Covered Bond register

    Lloyds TSB Bank’s Eu15bn global covered bond programme has been added to the UK’s Regulated Covered Bond register.

    • 12 Jan 2010
  • All covered bonds - Final standings 2009

    • 12 Jan 2010
  • Six programmes first to be affirmed by S&P

    Standard & Poor’s has taken the first actions under its new covered bond rating methodology, affirming six programmes’ AAA ratings.

    • 11 Jan 2010
  • All benchmarks - Final standings 2009

    • 11 Jan 2010
  • Pipeline bulges as mandates keep pace with supply

    Three issuers announced mandates this (Monday) morning, ensuring that the pipeline remains bulging even after three issuers closed books on new issues, as the pace of supply showed no sign of relenting in the second week of the new year.

    • 11 Jan 2010
  • Euro jumbos - Final standings 2009

    • 11 Jan 2010
  • A record start, and it’s just the beginning

    Next week promises to be as busy as this week’s record opening to a year, with two more issuers having officially announced plans for benchmarks in the past 24 hours on top of three outstanding mandates. Supply of Eu5.5bn yesterday (Thursday) took the week’s total to Eu10.25bn from seven deals, just short of the eight totalling Eu11bn in the busiest ever week for the covered bond market at the end of September.

    • 08 Jan 2010
  • ECB has Eu1.4bn in hand at half time

    Halfway through its covered bond purchase programme, the European Central Bank is Eu1.410bn behind an assumed target path under which the Eu60bn assigned to the scheme will be spent at the end of June when it finishes.

    • 08 Jan 2010
  • ABN merger certainty makes S&P positive on FBN

    Standard & Poor’s has revised its outlook for Fortis Bank (Nederland) from developing to positive because of greater certainty that it will be merged with the Dutch state-owned portion of ABN Amro Bank within two years.

    • 07 Jan 2010
  • Punchy pricing means round one to the issuers

    With four new jumbos hitting the market this (Thursday) morning, the number of benchmark issues this week is second only to the last week of September. However, investors have expressed disappointment about what they called expensive spread levels.

    • 07 Jan 2010
  • The Cover’s Deal of the Decade: a sign of the times

    You voted in your hundreds. Now find out which benchmark transaction of 2000-2009 has won the title of The Cover’s Deal of the Decade.

    • 06 Jan 2010
  • BNPP impressed by investors’ conviction in new year

    A Eu1.5bn seven year covered bond for BNP Paribas off its Home Loan programme yesterday (Tuesday) met with a strong reception from investors who, according to a BNP Paribas official, demonstrated an encouraging degree of conviction in the new issues that reopened the primary market.

    • 06 Jan 2010
  • Irresistible for issuers, but maybe not for investors

    A crowded pipeline suggests that new issuance could approach the frenzy of September, when record volumes of covered bonds hit the market. But with at least 10 issuers said to have plans to launch deals in the wake of the three that have already been priced, some market participants are already sounding a note of caution.

    • 06 Jan 2010
  • Dexia Kommunalbank keeps year-end resolution

    Preparations for a new Pfandbrief for Dexia Kommunalbank Deutschland that began in December came to fruition yesterday (Tuesday) as the issuer priced a Eu1.25bn seven year benchmark, fulfilling its intention of coming to market in early 2010 if market conditions were supportive.

    • 06 Jan 2010
  • ECB furthest behind target path on smallest increase

    A Eu6m increase in purchases under the European Central Bank’s programme reported today (Tuesday) left the cumulative total Eu792m short of an assumed target path necessary for Eu60bn to have been spent at the end of June, putting it the furthest behind schedule since reporting began. Please note: after today The Cover will no longer report ECB covered bond purchases daily, but will publish a weekly round-up on Fridays and on an ad hoc basis when appropriate.

    • 05 Jan 2010
  • BBVA pleases as trio reopen covered bond market

    Bankers said that Banco Bilbao Vizcaya Argentaria turned over a new leaf with the first Spanish covered bond of the year today (Tuesday), a benchmark transaction that – like deals for BNP Paribas and Dexia Kommunalbank Deutschland – is set to be priced at the tight end of guidance on the back of an oversubscribed order book. The trio of deals mark the reopening of the jumbo market in 2010.

    • 05 Jan 2010
  • SNS cut necessitates remedial covered bond action

    Fitch on 22 December downgraded SNS Bank’s long term issuer rating from A to A- and placed it on rating watch negative because of the bank’s large exposure to stressed property finance sectors, and US and Spanish real estate markets in particular. The issuer has to take remedial action with respect to its covered bond programme because of the downgrade.

    • 05 Jan 2010
  • S&P turns Nykredit Realkredit outlook negative

    Standard & Poor’s on 30 December changed its outlook on Nykredit Realkredit’s A+ rating from stable to negative because of pressures on its banking operations, but said that the asset quality of the group’s core lending business remained resilient.

    • 05 Jan 2010
  • Final 2009 league tables: last chance to check data

    The Cover will be publishing its final benchmark league tables for 2009 in the coming days. We are double-checking the data with the top few banks to ensure that the final result is accurate – if you would like to verify that the information we have about your bank’s league table credit or any other’s is correct, then please contact us as soon as possible and we will be happy to send it to you.

    • 05 Jan 2010
  • Fitch OKs Rock covered AAA, but not on guarantee

    Fitch on 22 December affirmed Northern Rock’s covered bonds at AAA based on its revised criteria for assessing liquidity risk in covered bonds, without giving credit to a guarantee for the covered bonds provided by the UK Treasury.

    • 05 Jan 2010
  • Likely fall in external support pressures HSH

    Moody’s on 21 December put HSH Nordbank’s A2 rating on review for downgrade, possibly of more than one notch, because it is concerned that potential sources of external support may diminish.

    • 05 Jan 2010
  • Longer liquidity management period boosts DnB Nor

    Fitch on 22 December affirmed the AAA rating of DnB Nor Boligkreditt’s covered bonds and gave them an improved Discontinuity Factor after the Norwegian issuer extended the liquidity gap management period for its hard bullet bonds from six to 12 months.

    • 05 Jan 2010
  • ECB buying lags target path after seasonal slowdown

    Settled purchases under the European Central Bank’s Eu60bn covered bond programme increased by Eu1.193bn during The Cover’s two week seasonal break and by a further Eu70m this (Monday) morning, taking the total to Eu28.812bn.

    • 04 Jan 2010
  • Covered bond issuers on starting blocks for 2010

    Issuers are limbering up to launch the first benchmark covered bonds of 2010, with three institutions having mandated for transactions that could hit the market this week and others busy with preparations.

    • 04 Jan 2010
  • Greek TPIs cut on sovereign woe, covered bonds hit

    Moody’s has downgraded Marfin Egnatia Bank’s covered bonds and placed the rating of those issued by National Bank of Greece on review for possible downgrade because of a cut in Greece’s sovereign rating from A1 to A2. These were the only negative rating actions on covered bonds since The Cover’s last bulletin on 18 December to the best of our knowledge; we will catch up on other covered bond rating developments and related issuer rating actions tomorrow (Tuesday).

    • 04 Jan 2010