Covered Bonds - All Articles

  • Heavily oversubscribed SVB prices tight

    Sparebanken Vest Boligkreditt (SVB) uncovered €1.6bn of demand in one hour and priced the tightest Norwegian deal this year on Tuesday. Meanwhile, Erste Bank is looking to issue a new 10-year.

    • 31 Jan 2012
  • BNZ opens door for Kiwi peers

    Bank of New Zealand convinced over 117 investors to participate in a three times oversubscribed trade on Monday. The surge of demand for the three year deal took leads by surprise, and market participants expect other non-European names to take advantage of investors’ hunger for the short end.

    • 31 Jan 2012
  • Senior stampede adds value to covered bonds

    The ECB's Long Term Refinancing Operation could increase the bid for covered bonds through its restorative effect on the senior unsecured market.

    • 30 Jan 2012
  • Rabobank's Storming RMBS success

    Rabobank's Obvion managed to almost double the size of its Storm 2012-1 RMBS, while tightening pricing on the short tranche by 10bp. The success of the trade surpassed expectations of market participants. Though covered bonds would be cheaper, the RMBS financing is isolated enough to protect the bank's top senior rating.

    • 30 Jan 2012
  • BNZ flies after maturity switch

    Bank of New Zealand returned to the market on Monday with a long three year benchmark, after postponing a five year trade earlier this month. The change of maturity and capped deal size yielded a far more positive result, with over 100 accounts contributing to the most oversubscribed order book of the year.

    • 30 Jan 2012
  • Covered fiscal strength indices win investor backing

    Barclays Capital’s new fiscal strength covered bond indices, which adjust the market value weighted exposure of country risk based on fiscal strength, have won the support of investors polled by The Cover.

    • 30 Jan 2012
  • Gaping window attracts few issuers

    Issuers could hardly hope for a better backdrop to bring benchmark deals. Bond yields are falling and investors are looking to put cash to work across a swathe of asset classes to capitalise on the rally, as seen most emphatically in the senior unsecured market this week. Yet Norway’s Sparebank Vest Boligkreditt remains the only obvious candidate for a deal next week.

    • 27 Jan 2012
  • BPI covered buyback heralds LM trend

    Portugal’s Banco BPI launched the second covered bond tender of the year on Thursday and market participants expect more to follow ahead of the European Central Bank’s second Long Term Refinancing Operation in February.

    • 27 Jan 2012
  • Eurozone supply scarcity sets market on fire

    At first glance, issuance of all covered bonds appears to be little changed this year from the last. But look a bit closer and it becomes clear that the market has been starved of publicly syndicated Eurozone benchmarks.

    • 27 Jan 2012
  • Non-Eurozone issuers keep up supply as continent goes quiet

    With many European bank issuers either in blackout or happily ensconced in the ECB’s generous bosom, this week’s four benchmark deals all came from outside the Eurozone, continuing the year’s predominant trend in the covered bond market.

    • 27 Jan 2012
  • UniCredit’s new €25bn programme not public

    Suggestions that UniCredit plans to raise a €25bn covered bond to take advantage of investor demand are misleading, a member of its treasury team told EuroWeek.

    • 27 Jan 2012
  • Morning Wrap, January 27: BPI buyback may spur others

    Portugal’s Banco BPI has launched the second covered bond tender of the year, offering a slim premium for its first covered buyback, though rising fears of a Portuguese default could provide an added incentive for investors.

    • 27 Jan 2012
  • Roundtable: Oz issuers discuss market’s future

    Australian issuers have priced over €11bn across five currencies thus far in 2012, ensuring that despite a steep drop in euro benchmark issuance the global covered bond market retains its record breaking pace.

    • 27 Jan 2012
  • Tight repo leads to fears of failed trades

    The secondary market in covered bonds is in danger of breaking, and though it is not there yet, there are concerns over ‘forced delivery squeezes’ in the repo market which may lead to failed trades. Though it has always been the intention of the European Central Bank to improve liquidity, there are some who now say that it is not doing enough. Covered bonds could risk becoming almost like a private placement market if the current situation persists.

    • 27 Jan 2012
  • All benchmarks

    • 26 Jan 2012
  • Supply scarcity sets market on fire

    A year on year comparison reveals that the covered bond market is starved of Eurozone supply, particularly in short maturities and noticeably from Germany. Though a new issuer has applied for a Pfandbrief licence, the picture is not likely to change soon and, despite the precarious sovereign backdrop, bankers say spreads could tighten by another 50bp-100bp.

    • 26 Jan 2012
  • BPI tenders ahead of LTRO — more to come

    Portugal’s Banco BPI launched the second covered bond tender of the year on Thursday and market participants expect more to follow ahead of the second Long Term Refinancing Operation in February.

    • 26 Jan 2012
  • Morning Wrap January 26

    The primary market remained closed on Wednesday, and in the absence of supply, secondary spreads rapidly tightened – suggesting issuers have every reason to bide their time.

    • 26 Jan 2012
  • Sparebank pulls in strong book for rare seven year

    Sparebank 1 Boligkreddit convinced over 110 accounts to participate in the first publically syndicated seven year covered bond in almost six months.

    • 25 Jan 2012
  • New programme is for repo, says UniCredit

    Suggestions that UniCredit plans to raise a €25bn covered bond to take advantage of current investor demand are misleading, a source close to the bank’s treasury has told The Cover.

    • 25 Jan 2012
  • What the Coeur case means for covered bonds

    French courts threw out contractual rights when they ruled to protect the owners of the Coeur Défense tower from their creditors. But the answer to this isn’t self-righteous indignation. It’s to beware of any market that’s never seen a default.

    • 25 Jan 2012
  • All covered bonds

    • 25 Jan 2012
  • Light supply and tighter spreads raise Spanish prospects

    With many French and Scandinavian issuers in blackout, the European covered bond pipeline is light on potential candidates for primary supply. Dwindling issuance is forcing investors to look at the secondary market for paper and has contributed to some spread tightening, particularly for Spanish Cédulas, making the prospect of a publicly sold deal from a Spanish national champion not quite so far fetched.

    • 25 Jan 2012
  • Morning Wrap January 25: Secondary market leads

    With as many as three benchmarks pricing in different time zones and currencies in the last 48 hours, it is evident that the covered bond sector has evolved from its parochial roots to a truly global market. However as far as the Eurozone is concerned, issuance has been pitiful. This is in part owed to the cheap three year financing provided by the ECB, but also because many issuers are in blackout. As a result there are few offers and spreads look set to tighten.

    • 25 Jan 2012
  • Sparebank sails with seven year benchmark

    Sparebank 1 Boligkreditt priced a €1.25bn seven year trade on Tuesday at the tight end of guidance, taking year to date Norwegian supply to over €4bn.

    • 24 Jan 2012
  • Structured covered eligible for LCR, but not ABS

    Structured covered bonds which use SPVs will remain eligible for bank liquidity buffers, analysts said on Monday. This follows confirmation that ABS will not be eligible for inclusion in the liquidity buffers as it is not issued by a credit institution, the analysts said. They were responding to reports last week, prompted by the latest draft of CRD IV, released by the Danish presidency on January 9, that ABS could be included.

    • 24 Jan 2012
  • A$ market’s show of strength for Westpac

    Westpac Banking Corporation priced its first Aussie dollar covered bond on Monday night, following in the wake of Commonwealth Bank of Australia. It mimicked CBA’s choice of tenor and dual fixed rate and floating rate format — but issued slightly less and at a tighter spread.

    • 24 Jan 2012
  • US funds snap up Bank of Montreal five year

    Bank of Montreal (BMO) seized on robust US demand for Canadian covered bonds, printing $2bn of five year notes on Monday. The deal brings total US dollar issuance this month to $6bn from three deals, a record for January.

    • 24 Jan 2012
  • LTRO could spark covered buybacks

    Portuguese and Irish issuers could follow National Bank of Greece and tender covered bonds ahead of the next ECB Long Term Refinancing Operation in February. Even if participation is half that of NBG’s recent buyback operation, the capital increase could make a compelling argument.

    • 24 Jan 2012
  • Morning Wrap: January 24: covered bonds go global

    The Bank of Montreal, Westpac have both priced dollar and Aussie dollar deals while Sparebank 1 is poised to price a euro benchmark. The three deals in three currencies come at a time of dormant Eurozone issuance and illustrate the increasingly global nature of the market.

    • 24 Jan 2012
  • Primary momentum still there despite blackout

    As eurozone issuers slip into blackout, Australian, Nordic and Canadian names have taken over primary market supply. Westpac is planning trades in euros and Australian dollars, while Sparebank 1 Boligkreditt began taking indications of interest on a seven year trade this Monday morning.

    • 23 Jan 2012
  • Morning Wrap: January 23

    Westpac has mandated Deutsche Bank and Westpac to arrange a series of investor meetings in Europe and will visit Frankfurt, Oslo, Helsinki, Duesseldorf, Munich, Zurich, Vienna, the Netherlands, Paris and London. The borrower is also planning an A$ benchmark following the Commmonwealth Bank of Australia’s success. But scope for eurozone issuance this week is expected to be limited as many banks enter blackout.

    • 23 Jan 2012
  • Australia and Canada take up European slack

    Lingering concerns about the depth of the 144A market have been allayed after Bank of Nova Scotia’s $2.5bn deal on Friday on the back of more than $5bn orders took this January’s supply beyond last year’s almost record levels.

    • 23 Jan 2012
  • UBS oversubscribed as European demand leads

    On Thursday UBS issued its debut dollar deal and the first Yankee covered bond of 2012. The $1.5bn three-year priced in line with guidance on an order book just shy of $2bn. Initial indications suggest the deal relied more heavily on international demand than previous US dollar benchmarks.

    • 20 Jan 2012
  • Home and away for Westpac

    After a spree of issuance by Australian banks in foreign currencies, Westpac announced plans on Friday to issue its first Australian dollar covered bond, while Bank of New Zealand raised NZ$225m ($180m) through a domestic private placement.

    • 20 Jan 2012
  • Lloyds goes long and large for sixth sterling

    Lloyds launched the sixth sterling deal of 2012 on Friday; the longest dated transaction so far this year and one of the most oversubscribed sterling trades in months. Year to date supply in the currency has already surpassed lower bound estimates for total 2012 issuance, with a raft of UK names yet to come to market.

    • 20 Jan 2012
  • UBS re-opens dollar market as Nordic procession continues

    In stark contrast to the sudden burst and then abrupt stop in covered bond supply from Eurozone names, Nordic and Swiss issuers have brought a steady succession of successful trades. Terra Boligkreditt sold its third ever transaction this week, and UBS made its first foray into a new currency, restarting the dormant dollar market.

    • 20 Jan 2012
  • Copycat sterling floaters find solid bank bid at short end

    Barclays Bank, Nationwide and National Australia Bank all tapped the sterling market with three year floating rate covered bonds this week. The unusual format gives issuers another way of raising funding, though some bankers questioned the amount of liquidity now left for this sort of deal.

    • 20 Jan 2012
  • Aussie invasion begins as ANZ takes covered to Swiss

    Australia and New Zealand Banking Group on Monday initiated what bankers tip to be an Australian-dominated covered bond scene in Switzerland in the next few weeks. ANZ issued a blow-out Sfr725m dual tranche deal — the first under new Australian legislation and the largest new franc covered bond in recent years.

    • 20 Jan 2012
  • Morning Wrap: January 20

    After three floating rate sterling covered bonds in a week, demand may be approaching exhaustion, for now at least. Lloyds has therefore decided to move to the other end of the curve, mandating BNP Paribas, Lloyds, RBS, Santander and UBS for a sterling deal with at least a 10 year maturity that will be launched on Friday. The transaction comes amidst an appreciably more positive credit backdrop, suggesting Eurozone issuers might be tempted to return next week.

    • 20 Jan 2012
  • NBG covered bond buyback a success despite ‘challenges’

    Some 43% of National Bank of Greece covered bondholders submitted their paper for buyback below par, helping the bank reach a €300m core tier one gain through its liability management exercise.

    • 20 Jan 2012
  • Santander funds cheaper in RMBS than covered

    A sizeable new euro bid for UK RMBS emerged this week as Santander UK’s £2.2bn-equivalent Holmes 2012-1 provided the sector’s first issue of the year. The deal raised funding at levels considerably tighter than where it could have issued in covered bonds.

    • 20 Jan 2012
  • BNZ flops as Aussie banks fill euro demand

    While Australian banks got a multi-currency array of public and private covered bonds away this week after their trio of inaugural euro benchmarks last week, a further sale in the currency by one issuer’s New Zealand subsidiary flopped. Despite Bank of New Zealand’s significant over-collateralisation and ultra-low loan to value ratio, its quintet of lead managers had to postpone its expected deal.

    • 20 Jan 2012
  • Aussie issuers should stick closer to home

    Commonwealth Bank of Australia’s ground-breaking Aussie dollar covered bond deal is the story that everyone was waiting for. Its success disproves the conventional wisdom that euros and dollars are the only really liquid markets.

    • 19 Jan 2012
  • Eurohypo downgrade priced in

    Moody's looks set to downgrade Eurohypo's Pfandbriefe below triple A, not that it should matter. The rating move is already discounted, and with German supply in such short supply, its outstandng bonds are set to remain well supported. Moreover, with more ECB cheap money coming, Pfandbrief issuers have very little incentive to pay up and go to the public market.

    • 19 Jan 2012
  • NAB and UBS in debut currency deals, LTSB next

    The non-eurozone, no-euro theme in the covered bond market continued on Thursday with the announcement of two debut currency benchmarks, one of which was priced. After the successes of Barclays and Nationwide, National Australia Bank issued its first sterling dea, Lloyds mandated for another sterling deal and UBS is set to bring its first dollar deal.

    • 19 Jan 2012
  • NAB chooses floater for sterling debut

    National Australia Bank issued its first sterling covered bond on Thursday, choosing the same three year floating format that worked for Barclays and Nationwide earlier this week.

    • 19 Jan 2012
  • Morning Wrap January 19

    Although the secondary market remains firm with all recently issued deals performing well and new ones likely to be readily absorbed, eurozone borrowers remain noticeable by their absence.

    • 19 Jan 2012
  • Santander grabs LTRO bid, funds well inside covered

    Santander UK’s Holmes 2012-1, the first UK RMBS of the year, has raised £2.2bn-equivalent and established three year euros as a new sweet spot — a sharp contrast to the dollar-denominated issues of 2011. While the three year dollar tranche stayed at $500m, sized to demand, the three year euro tranche ballooned during bookbuilding on Tuesday.

    • 19 Jan 2012
  • Dollars absent from covered restart

    Year to date covered bond issuance in all currencies has reached €32.3bn, according to Dealogic data. Issuers have launched successful trades in euros, sterling, Norwegian, Danish and Swedish kroner/kronor, Swiss francs and Australia dollars. But US dollar denominated supply, the largest market after euros, has been non-existent.

    • 18 Jan 2012
  • Morning wrap January 18

    Norway’s Terra Boligkreditt has mandated leads Commerzbank, Nordea, UBS and UniCredit for a euro offering, possibly due this week. The borrower finished a roadshow in early September, but decided to not issue because of volatile markets. Terra is targeting a €500m deal.

    • 18 Jan 2012
  • Secondary supported, funding window open

    Secondary market activity has slowed from the brisk pace in the first two weeks of the year but the market remains well supported, particularly in the short end where offers out to three years have started to disappear. Better buying has also been reported in peripheral credits, leading participants to speculate that primary supply might be forthcoming. With the exception of ANZ’s 10-year, the long end is also performing well.

    • 18 Jan 2012
  • All benchmarks

    • 18 Jan 2012
  • Terra ends five month wait and secures €500m

    Terra Boligkreditt successfully raised €500m of five year funding on Wednesday morning, nearly five months after it first mandated for a deal. German and Nordic investors looked past the bond’s Aa2 rating from Moody’s, allowing the issuer to price inside guidance on the back of an oversubscribed book.

    • 18 Jan 2012
  • ANZ makes big splash in Swissies

    Australia and New Zealand Banking Group issued the first Swiss franc covered bond under the new Australian legislation on Monday — a Sfr725m dual tranche note — which was also the largest new issue in recent years for this asset class.

    • 17 Jan 2012
  • UK floaters broaden investor interest

    Nationwide printed £650m of three year floating rate notes to demand on Monday, the second UK covered floater in that maturity in as many working days. Barclays and Nationwide’s covered FRNs highlight the growing demand for UK covered bonds and the broadening range of investors wanting a piece of the market.

    • 17 Jan 2012
  • Contrasting fortunes for CBA and BNZ

    With the euro pipeline looking light on clear candidates, the Australian market came to life on Tuesday. Commonwealth Bank of Australia’s A$3.5bn five year covered bond, the first from an Australian issuer, is the largest ever Australian dollar FIG transaction. Bank of New Zealand, however, found a very different reception for its euro offering and decided to postpone issuance.

    • 17 Jan 2012
  • CBA eyes market ahead of domestic covered bond

    Commonwealth Bank of Australia is closely watching the market this week before selling the first Australian dollar denominated covered bond from one of the country’s banks. But bankers are cautious about pushing ahead with the deal, after downgrades of European sovereigns over the weekend spooked investors.

    • 17 Jan 2012
  • NBG buyback hits 45% despite ‘unique challenges’

    Some 43% of National Bank of Greece covered bondholders submitted their paper for buyback below par, helping the bank reach a €300m core tier one gain through its liability management exercise.

    • 17 Jan 2012
  • Aussie dollar covered comes of age with CBA

    Commonwealth Bank of Australia has priced the first covered bond for a domestic bank in the home currency. Not only is it the largest covered bond in that currency by a considerable margin, but it is also the largest ever funding exercise undertaken by any financial institution in the local currency. The deal size sends a strong signal that these bonds are eligible for liquidity buffer purposes. Ostensibly pricing 20bp wider than its senior bonds but 45bp inside where it would fund a covered bond in euros, the spread has clearly set a new paradigm.

    • 17 Jan 2012
  • Morning Wrap January 17

    Commonwealth Bank of Australia looks set to become the first bank in the country to issue a covered bond in the home currency. The deal is also set to become the largest FIG bond ever sold in Australia.

    • 17 Jan 2012
  • CBA opens books on Aussie inaugural

    Commonwealth Bank of Australia opened books on the first Australian dollar transaction from a domestic bank on Monday, while Bank of New Zealand began taking indications of interest for that jurisdiction’s first trade of 2012.

    • 16 Jan 2012
  • Nationwide follows Barclays with three year FRN

    Nationwide has kept up the flow of sterling issuance since the start of 2012, following Barclays and RBS with a three year covered bond priced at 165bp over three-month Libor on Monday. As with Barclays’ three year last week, the deal’s floating rate format makes heavy participation from bank treasuries — some of which will be awash with cheap ECB cash — highly likely.

    • 16 Jan 2012
  • Asian issuers unlikely to follow Aussie covered bonds soon

    Banks from across Asia have long considered selling covered bonds, but so far only Australian, New Zealand and South Korean borrowers have tapped the market. That is not likely to change anytime soon, Ted Packmohr, a covered bond analyst, told EuroWeek Asia. Investors may be ready to move away from a heavy supply of European names — but there are just not enough Asian issuers that fit the bill.

    • 16 Jan 2012
  • Secondary spreads steady after S&P cuts

    Covered bond spreads have survived sweeping sovereign downgrades by Standard & Poor’s on Friday. Only French issuer Dexia was reported wider on Monday morning, while the LTRO cash injection has ensured short dated Spanish and French paper remains highly sought after.

    • 16 Jan 2012
  • CBA sells first privately placed covered bond

    Commonwealth Bank of Australia (CBA) has sold its first privately placed covered bond, joining ANZ Bank and National Australia Bank (NAB) in taking advantage of an October 2011 change in Australian banking law.

    • 16 Jan 2012
  • Asian issuance prospects still slim

    Banks across Asia have long considered selling covered bonds, but so far only Australian, New Zealand and South Korean banks have tapped the market. That is unlikely to change soon as not enough Asian issuers fit the bill.

    • 16 Jan 2012
  • Pfandbrief issuers benefit from rarity, LTRO liquidity

    Covered bond bankers of a bygone era could never have envisaged German Pfandbrief issuers benefiting from rarity value in a January window. But deals from Aareal Bank and Deutsche Pfandbriefbank (pbb) this week appeared to show this had become reality.

    • 13 Jan 2012
  • Morning Wrap January 13

    Covered bond supply was restricted to an impressive €850m tap from BPCE on Thursday, taking the number of long dated French transactions already this year to six.

    • 13 Jan 2012
  • Nordea, Credit Suisse shine but fears grow over supply

    Nordea Bank Finland launched the largest ever Nordic covered bond and Credit Suisse priced the tightest five year trade of 2012 in another successful week for the covered bond market. However, while the tone remains more constructive than many syndicate bankers had hoped for during December, the list of top tier issuers able to launch stand out trades is almost exhausted.

    • 13 Jan 2012
  • Pipeline replenished despite approaching blackout

    A series of mandates from outside the eurozone hit screens on Friday. Australian, New Zealand and Norwegian issuers could all launch in the next two weeks, while three Turkish banks have hired UniCredit Menkul Degerler for trades in 2012.

    • 13 Jan 2012
  • ABN, Rabobank take Swiss FIG sector out of deep freeze

    Senior unsecured bank debt began moving back on to the Swiss franc bond menu this week as a pair of fixed rate deals from Dutch duo ABN Amro and Rabobank rekindled yield-starved investors’ appetite.

    • 13 Jan 2012
  • Investors fear comedown after LTRO high

    Investors this week warned the European FIG bond market not to get carried away with its impressive start to 2012, cautioning that many of the challenges that plagued the sector in the final months of last year remained.

    • 13 Jan 2012
  • Bank finance on a high after LTRO but investors fear the comedown

    Investors this week warned the European FIG bond market not to get carried away with its impressive start to 2012, cautioning that many of the challenges that plagued the sector in the final months of last year remained.

    • 13 Jan 2012
  • Curve steepening brings short-end back into play

    Investors have devoured nearly €11bn of long dated covered bonds issued since the start of the year, but this week investors began to show fatigue towards deals with elongated maturities.

    • 13 Jan 2012
  • ANZ plots different course with long dated euro debut

    Australia and New Zealand Banking Group became the first Australian issuer to launch a second syndicated benchmark covered bond on Monday. Looking to differentiate itself from dual five year euro debuts from Commonwealth Bank of Australia and National Australia Bank last week, the borrower tapped the crowded long end with a 10-1/2 year jumbo.

    • 13 Jan 2012
  • RBS performs well on sterling covered debut

    Royal Bank of Scotland this week issued its debut covered bond in its home currency, the second issuer to do so already this year. It chose to differentiate itself from Barclays, which sold a 10 year last week, with a longer, 12 year maturity and attracted a strong order book which enabled it to price in line with guidance. The deal has since performed well, in contrast to the Barclays deal.

    • 13 Jan 2012
  • Euro jumbos

    • 12 Jan 2012
  • Auction fever brings peripheral relief

    The strong Italian and Spanish government debt auction results on Thursday have helped government bond yields tumble, which is good news for issuers. But with cheap financing from the ECB still on offer and covered bond spreads still wide to the government market, primary issuance prospects remain dim.

    • 12 Jan 2012
  • Primary premiums drive secondary

    As a result of deal announcements and the new issue premium, secondary market turnover has been hit, with spreads moving on little volume. Curves have conspicuously steepened in France but DexMA remains out of line.

    • 12 Jan 2012
  • Bold BPCE continues ‘reckless’ French rush

    Syndicate bankers had expected Thursday’s ECB meeting to curtail supply, but BPCE has courageously squeezed through the funding window with a competitively priced €850m 10-year tap.

    • 12 Jan 2012
  • ABN and Credit Suisse maintain momentum

    ABN Amro and Credit Suisse maintained primary market momentum on Wednesday, adding another €2.25bn of supply. ABN Amro paid above initial price thoughts to ensure smooth execution of its 10 year, while Credit Suisse was able to price its five year inside UBS’s offering last week — making it the tightest five year euro print of the year.

    • 11 Jan 2012
  • RBS performs after distancing itself from Barclays

    RBS has issued the second sterling covered bond this year and its debut deal in the currency. It chose to differentiate itself from Barclays’ 10 year deal with a longer 12 year. In so doing, it attracted a strong order book enabling it to price in line with guidance and the deal has since performed well, in contrast to Barclays.

    • 11 Jan 2012
  • Morning wrap January 11

    Four covered bond issuers collectively raised over €5bn of new funding on Tuesday across two currencies and three tenors. Total issuance this week exceeds €8bn equivalent and on Wednesday a further two are lining up with euro benchmarks. This suggests borrowers will have raised at least €25bn equivalent this year by the close of play on Wednesday.

    • 11 Jan 2012
  • LCR should be good for covered bonds and ABS

    The Basel Committee this week reaffirmed its commitment to push ahead with the introduction of the liquidity coverage ratio by 2015. By that date banks will have to have set aside the requisite amount of capital in assets that the committee deems to be liquid.

    • 11 Jan 2012
  • Nordea prints largest ever Nordic covered

    Having aimed for a maximum €2bn deal, Nordea Bank Finland ended up printing an even larger trade after its July 2017 drew €3bn of demand. The €2.25bn deal, increased off the back of ECB Covered Bond Purchase Programme participation, is the largest Nordic covered bond ever.

    • 11 Jan 2012
  • Vdp publishes spreads after transparency call

    The Association of German Pfandbrief Banks (vdp) has begun publishing indicative jumbo Pfandbriefe spreads following calls for greater price transparency from smaller institutional investors. At the same time the vdp has widened the definition of jumbo Pfandbriefe.

    • 10 Jan 2012
  • All benchmarks

    • 10 Jan 2012
  • Morning wrap January 10

    Australia and New Zealand Banking Group, Aareal bank and Compagnie de Financement Foncier successfully raised a collective €2.5bn on Monday, opening the way for Deutsche Pfandbriefbank, Nordea and Credit Mutuel-CIC - which are expected to launch and price deals on Tuesday.

    • 10 Jan 2012
  • Vive la différence! CM-CIC goes for 12 year

    Crédit Mutuel-CIC Home Loan has launched the longest dated euro trade of 2012, a 12 year aimed at German and French buy and hold investors.

    • 10 Jan 2012
  • Covered bid stays strong

    The covered bond primary market continues to enjoy good momentum, with as many as four issuers collectively raising the equivalent of around €5bn in the four to 12 year area across two currencies.

    • 10 Jan 2012
  • Tougher names set to test appetite

    A better gauge of the depth of covered bond demand is likely this week, as bank arrangers test appetite for slightly more challenged credits. Of the four deals currently in the market, three are not considered the best or easiest names to sell — not that that should necessarily be a problem — provided the spread is right.

    • 09 Jan 2012
  • ‘Astonishing’ price for Aareal Pfandbrief

    Germany’s Aareal Bank launched the first Pfandbrief of 2012 on Monday, targeting a no-grow €500m four year transaction. With the deal size fixed, the issuer prioritised pricing, managing to defy bankers’ expectations and price inside guidance of 60bp area — and inside the curves of other second tier German issuers.

    • 09 Jan 2012
  • ANZ plots different course with euro debut

    Australia and New Zealand Banking Group became the first Australian issuer to launch a second syndicated benchmark on Monday. Looking to differentiate itself from dual five year euro debuts from Commonwealth Bank of Australia and National Australia Bank last week, the borrower tapped the crowded long end with a 10-1/2 year jumbo.

    • 09 Jan 2012
  • Re-opening shows credit curve widening for high beta names

    National champions led the frenetic re-opening of the covered bond market this week, but the range of spreads on offer was a clear sign that the credit curve has widened sharply since this time last year.

    • 06 Jan 2012
  • Senior, covered bonds wake from fever but bankers fear relapse

    Banks went on a binge of bond funding as the covered bond and senior debt markets reopened after long gaps. Investors devoured €15bn of covered paper and €10bn of senior.

    • 06 Jan 2012
  • Ozzie pair performs in secondary

    Covered bond traders reported that Australian inaugurals from Commonwealth Bank of Australia and National Australia Bank have traded as much as 10bp tighter in the secondary market, a welcome contrast to the dollar debuts of Westpac and ANZ last November.

    • 06 Jan 2012
  • Off to flying start but prospects uncertain

    The covered bond market enjoyed its busiest week since this time last year, with 10 issuers raising a collective €15bn versus the 15 borrowers who raised €18.5bn in the first week of 2011. But if past form is a guide, the rush of new issuance does not in any way indicate that the markets will remain buoyant in the longer term.

    • 06 Jan 2012
  • Yield hungry Germans help French covered restart in style

    Société Générale launched the third long dated French benchmark in as many days on Thursday. German investors in particular gave the benchmark trio a vote of confidence, an encouraging change of stance as many had held off from participating in French trades towards the end of last year, according to several market participants.

    • 06 Jan 2012
  • Demand deep but finite for French 10 year

    French top tier borrowers have issued nearly €5bn of 10 year paper in three days, meeting demand from insurers and asset managers on the hunt for generous yields. The bonds in the secondary market have all held in, but the ten year maturity may not be such an automatic choice now for other French issuers that follow next week.

    • 06 Jan 2012