Covered Bonds - All Articles

  • ADB hunts long euros as FADE cleans up

    Fondo de Amortización del Déficit Eléctrico (FADE) was warmly welcomed by capital markets on Tuesday for its first benchmark in 18 months, while Asian Development Bank hit screens looking for its first syndicated euro deal in almost three years. HSH Finanzfonds also raised cash on Tuesday.

    • 31 Jan 2017
  • CM-CIC covered starts and finishes well through OATS

    Crédit Mutuel CIC on Tuesday became the first French covered bond borrower to begin and finish pricing at a spread that was markedly through OATs in this part of the curve, but the deal was a smaller size than expected.

    • 31 Jan 2017
  • RMBS, covered bond spreads converge — JPM

    Research from JP Morgan ABS and covered bond analysts show generic European ABS spreads in Italy, Spain and the Netherlands trending closest to covered bonds spreads since the European Central Bank launched purchase programmes for both asset classes, in October and November 2014.

    • 30 Jan 2017
  • Covered bonds to continue hot Q1 streak

    Some €26bn was issued in euro covered bonds in January, about 20% of 2017’s expected annual supply. That proportion is consistent with 2016, and suggests February and March will also be busy.

    • 30 Jan 2017
  • Demand for covered duration returns, despite rates volatility

    This week’s three piece covered bond issue from Crédit Agricole showed considerable demand for long dated covered bonds. Though rates volatility and relative value may have deterred some investors, the high outright yield was simply too attractive for many to ignore.

    • 27 Jan 2017
  • Crédit Ag follows covered bond blow-out with RMBS debut

    Crédit Agricole mandated its inaugural public securitization of French home loans on Thursday, only a day after it printed a triple tranche covered bond to raise €2.5bn. The deal will be marketed next week, with launch and pricing targeted for the week of February 13.

    • 26 Jan 2017
  • Créd Ag adds 20 year benchmark in three tranche CB whopper

    Renewed appetite in the long end of the curve allowed Crédit Agricole Home Loan SFH to add a rare benchmark 20 year covered bond to an offering of eight and 15 year notes on Wednesday, as the French lender walked away with a healthy €2.5bn of funding.

    • 25 Jan 2017
  • FIG market keeps lights on in blackout season

    FIG investors can expect the first round of post-earnings announcement deals in forthcoming sessions, though they have not been left wanting even at the height of blackout season.

    • 25 Jan 2017
  • The covered bond squeeze has legs

    Dealers are already running low on covered bond inventory and with this year’s first rush of new issues now done, a squeeze is already starting to get underway.

    • 24 Jan 2017
  • Crédit Agricole mandates for dual tranche covered

    Crédit Agricole has mandated leads for a possible eight and 15 year covered bond which is likely to be launched on Wednesday.

    • 24 Jan 2017
  • LBBW issues largest dollar Pfandbrief in over three years

    LBBW has priced the largest Pfandbrief in dollars since October 2013 with a comfortably oversubscribed order book, one of the most granular in years for a German covered bond in dollars.

    • 24 Jan 2017
  • LBBW mandates for three year covered in dollars

    LBBW has mandated leads for its first dollar covered bond benchmark of the year. The public sector-backed Reg S transaction is expected to be launched in the near future.

    • 23 Jan 2017
  • Spanish supply hoped for as spreads squeeze tighter again

    Spanish and French covered bonds were well supported on Monday with further buying reported following demand seen last week. With only one Spanish Cédulas seen so far this year, the market should be receptive to more supply.

    • 23 Jan 2017
  • Long end in focus as covered bond squeeze feared

    Almost 18% of this year’s expected covered bond supply has now been issued and it seems likely that the pace in the primary market will begin to moderate. With less new supply, there could be more technical squeezes on the way

    • 20 Jan 2017
  • Axa issues last covered before programme reboot

    La Banque Postale (LBP) and Axa Bank Europe SCF priced French covered bonds this week. Axa’s may be its last before it restructures its programme.

    • 19 Jan 2017
  • High fives for a trio of covered bonds

    SpareBank1 Boligkreditt, Aareal Bank and Nordea took advantage of strong demand for five year paper to issue oversubscribed deals this week, paying virtually no new issue concession.

    • 19 Jan 2017
  • Covered Bond Label spreads to Canada as RBC joins

    Royal Bank of Canada is set to become the first covered bond issuer in Canada to join the Covered Bond Label initiative.

    • 19 Jan 2017
  • DBS sets out its vision for Singaporean covered bonds

    DBS Bank issued its long-awaited debut euro benchmark this week with a choice of tenor and pricing that worked well for for the Singaporean lender. It may return later this year.

    • 19 Jan 2017
  • EBRD boosts Slovak covered bonds

    The European Bank for Reconstruction and Development has invested in its first Slovak covered bond and is working with local regulators to update the local covered bond law.

    • 19 Jan 2017
  • Bluestep Bank to update investors on Swedish RMBS shelf

    Swedish non-conforming mortgage lender Bluestep Bank is meeting investors next week in Stockholm to update them on its securitization programme, the only active RMBS shelf in the Swedish mortgage market.

    • 18 Jan 2017
  • Sparebank and Aareal covereds find favour in fives

    Sparebank 1 Boligkreditt and Aareal Bank issued well oversubscribed covered bonds on Wednesday, paying virtually no new issue concession. Both banks took advantage of enduring demand for five year tenors, while for Aareal the issue was cheaper than the European Central Bank’s term liquidity.

    • 18 Jan 2017
  • High fives for covered bonds

    After a glut of long-dated covered bonds in 2016, investors are scrambling to bring the duration of their portfolio down again, and that means five year covered bonds are likely to remain a firm favourite. More issuers should turn down the ECB's TLTRO, and try covered bonds instead.

    • 17 Jan 2017
  • Aareal takes aim at a long five year Pfandbrief

    The German real estate lender, Aareal Bank, has mandated leads for a euro-denominated five year German mortgage-backed covered bond.

    • 17 Jan 2017
  • Axa takes ultra-long covered bond funding

    The French issuer, Axa Bank, has launched a sub benchmark covered bond with a 15 year maturity which closely matches the long dated assets on its balance sheet. This deal is likely to be the last deal under the present structure of its covered bond programme.

    • 17 Jan 2017
  • Covered bond label spreads to Canada as RBC joins

    Royal Bank of Canada is set to become the first covered bond issuer in Canada to join the Covered Bond Label initiative.

    • 17 Jan 2017
  • Obvion hits post-crisis tight in Dutch RMBS

    Obvion priced its €2bn Storm 2017-1 RMBS at a record low spread for for five year Dutch RMBS paper since the financial crisis, and the lender has said it will continue to look to build on its range of RMBS transactions.

    • 16 Jan 2017
  • DBS Bank lands long awaited debut euro covered bond

    Singaporean issuer DBS Bank is set to close its first euro covered bond, four months after putting the transaction on hold.

    • 16 Jan 2017
  • Nordea issues its largest covered in three years, as LBP returns

    Nordea Mortgage Bank (NMB) was set to issue its largest covered bond in three years with a well subscribed order book and a modest concession. At the same time, La Banque Postale returned with its now regular annual covered bond funding.

    • 16 Jan 2017
  • Short core covereds bid after ECB removes negative yield floor

    Core and non-eurozone covered bonds in the short to intermediate part of the curve were well supported on Friday after the European Central Bank said it would buy covered bonds with yield below its deposit floor.

    • 13 Jan 2017
  • Sterling covered bond supply continues to flow

    The enduring nature of sterling covered bonds was underscored again this week with deals issued by Lloyds Bank and BayernLB taking this year’s total in the UK currency to six.

    • 12 Jan 2017
  • Covered national champions get traction

    Covered bond deals issued this week by Société Générale and Erste Bank showed that there is still good demand for bonds issued by national champions, even in the more difficult longer tenors.

    • 12 Jan 2017
  • NordLB and Bawag 10 year covereds barely subscribed

    Ten year Pfandbrief €500m deals issued this week by NordLB and Bawag were narrowly oversubscribed even with the support of the Eurosystem.

    • 12 Jan 2017
  • Non-conforming Scandinavian lender eyes capital markets

    Swedish lender Bluestep Bank is said to be considering a new non-conforming RMBS deal, with the lender expected to host an investor day this month.

    • 12 Jan 2017
  • Covered bond liquidity is starting to matter more

    As many as eight covered bonds were launched across three currencies this week, the vaguely discernible pattern suggesting better interest for the larger deals with intermediate maturities and particularly those from non-eurozone issuers where liquidity is most likely to be better.

    • 12 Jan 2017
  • Norwegian covered bonds set for rating boost

    Norwegian covered bonds could be in line for a ratings bump following implementation of the Bank Recovery and Resolution Directive (BRRD) said Standard and Poor’s. Separately, tighter Norwegian mortgage lending criteria should dampen house price inflation but it still remains unsustainably high, said Fitch.

    • 12 Jan 2017
  • BayernLB closes in on sterling Pfandbrief first

    BayernLB was set to issue its first sterling public sector Pfandbrief on Thursday with the latest order book update suggesting it had made good headway by paying a super attractive spread.

    • 12 Jan 2017
  • Morgan Stanley to securitize legacy loans from former Lehmans lender

    Morgan Stanley is preparing a securitization of legacy assets originated by Lehman Brothers’ former Dutch mortgage lending unit.

    • 11 Jan 2017
  • BayernLB considers sterling covereds

    BayernLB has mandated leads for a possible three year sterling floater or short five year fixed rate transaction.

    • 11 Jan 2017
  • SG covered draws demand as Bawag scrapes through

    Société Générale SFH was set to issue a well oversubscribed mortgage backed seven year bond on Wednesday as Bawag shouldered a frostier reception for its public sector loan backed Austrian 10 year.

    • 11 Jan 2017
  • Tricky trades find smooth execution in super start for FIG

    Extraordinarily strong issuance conditions in the euro and sterling markets have bred a rush of new supply in the second week of 2017, allowing rarer names to price trickier deals across a broad range of asset classes.

    • 11 Jan 2017
  • Erste and only: covered borrower adopts cautious approach

    Erste Bank adopted a cautious pricing approach with its €750m 10 year Austrian Pfandbrief, which was priced on Tuesday when there was no other competing covered bond supply.

    • 10 Jan 2017
  • Obvion kicks off Storm RMBS programme for 2017

    Obvion, the most active issuer in the Dutch RMBS market last year, will kick off the market in 2017 with a new prime transaction from its Storm shelf.

    • 09 Jan 2017
  • Canadian issuers target five year tenor in dollar and euro covereds

    Toronto-Dominion Bank and Bank of Nova Scotia issued dollar and euro covered bonds on Monday, respectively, with both issuers targeting the five year part of the curve.

    • 09 Jan 2017
  • NordLB gets by with €500m 10 year

    German Landesbank NordLB issued a €500m 10 year Pfandbrief backed by public sector loans on Monday. The deal had a narrowly oversubscribed order book despite offering a fair new issue concession. Meanwhile, Austria's Erste Bank has mandated leads for a Pfandbrief backed by mortgages.

    • 09 Jan 2017
  • Swedish pair price nice and tight in euros

    Swedbank and Swedish Covered Bond Corporation rapidly attracted solid oversubscriptions for their €1bn five and seven year covered bonds that were priced with a minimal concession on Monday.

    • 09 Jan 2017
  • Lloyds returns to take £1bn in floating rate covereds

    Lloyds Bank tapped the covered bond market for a three year floating rate deal on Monday, the fourth year in a row that it has issued the instrument in early January.

    • 09 Jan 2017
  • New syndicate tech platform passes CBA test

    Investor Access, a platform which allows investors to submit orders for a new bond issue directly into the order book was deployed for the first time last week on a Commonwealth Bank of Australia sterling covered bond. Now work is underway to convince more dealers of the initiative’s worth.

    • 09 Jan 2017
  • High hopes for dollar covered bonds after BMO issues 2017 first

    The dollar covered bond market is in good shape, and it seems likely that issuers will want to follow the success of Bank of Montreal which last Wednesday issued the first benchmark of the year at a cheaper cost and in larger size than its previous deal issued six month ago.

    • 06 Jan 2017
  • SCBC mandates as covered market gears up for busy week

    The Swedish Covered Bond Corporation mandated leads for a euro covered bond benchmark as market participants prepare for another hectic week, following a substantial curve steepening this week.

    • 06 Jan 2017
  • Core covered banks issue in large size while they can

    Covered bond issuers from Europe’s core accessed the market across a range of intermediate tenors this week with LBBW, Compagnie de Financement Foncier (CFF) and Helaba issuing some of their largest deals in years.

    • 05 Jan 2017
  • DNB pulls stellar demand for 2017’s first Nordic covered

    DNB Boligkreditt got the Nordic covered bond market off to a blistering start on Wednesday with a €2bn five year deal that leads were able to tighten by 5bp from initial guidance.

    • 05 Jan 2017
  • Coventry issues first UK post-Brexit in euro covereds

    Coventry Building Society received a strong reception for the first euro-denominated covered bond from a UK issuer since the UK Brexit referendum. Despite cheaper funding alternatives, the deal demonstrated Coventry’s strategic commitment to the euro market.

    • 05 Jan 2017
  • Covered bond issuers dive into long end while conditions allow

    Four covered bonds issuers raised almost €6bn between them at the long end of the curve this week, suggesting borrowers are prioritising tougher, longer duration deals. And while conditions permit some are issuing in the largest size possible.

    • 05 Jan 2017
  • Overseas covered issuers turn to cheap sterling market

    Royal Bank of Canada, Canadian Imperial Bank of Commerce, Commonwealth Bank of Australia and Deutsche Pfandbriefbank tapped the sterling covered bond market this week at cheaper levels than they could have achieved in euros and dollars.

    • 05 Jan 2017
  • Covered issuers must accelerate funding

    With yields set to rise and spreads likely to widen, covered bond issuers should waste no time in getting ahead on 2017’s funding plans and doing the more difficult trades first.

    • 05 Jan 2017
  • CBA and PBB hit sterling covereds

    Commonwealth Bank of Australia swept up remaining demand in the now saturated five year sterling covered bond market on Thursday, while Deutsche Pfandbriefbank (PBB) got a fair reception for the first three year floating rate covered bond of the year.

    • 05 Jan 2017
  • Coventry enjoys strong reception for first UK post-Brexit euro covered bond

    Coventry Building Society received a strong reception for the first euro-denominated covered bond from a UK issuer since the UK referendum to leave the European Union. Despite cheaper funding alternatives, the deal demonstrated Coventry’s strategic commitment to the euro market.

    • 05 Jan 2017
  • CFF and Helaba tap heavy euro demand in covered market

    Euro covered bond issuers came to the market in size across a range of tenors on Thursday morning, as Compagnie de Financement Foncier (CFF) landed a €1.5bn six year deal and Helaba drew €2bn of funding with a five and 10 year Pfandbrief issues.

    • 05 Jan 2017
  • ABN extends covered curve

    ABN Amro issued its third 15 year covered bond in three years on Wednesday and, in a surprise late addition, tacked on a sub-benchmark 20 year.

    • 04 Jan 2017
  • RBC finds more covered demand in sterling fixed than floating

    Royal Bank of Canada took advantage of deeper demand for fixed rate paper than floating in sterling covered bonds, issuing a five year trade on Wednesday. RBC has gathered more demand for its deal than Canadian Imperial Bank of Commerce, which issued a floating rate deal a day before.

    • 04 Jan 2017
  • DNB pulls in €3.3bn book for first Nordic deal of the year

    DNB Boligkreditt got the Nordic covered bond market off to a blistering start on Wednesday with a €2bn five year deal that leads were able to tighten by 5bp from initial guidance.

    • 04 Jan 2017
  • Covered bond borrowers must get ahead on funding plans

    With yields set to rise and spreads likely to widen, covered bond issuers should waste no time in getting ahead on 2017’s funding plans and doing the more difficult trades first.

    • 03 Jan 2017
  • Covered issuers front-load in size and duration

    Four covered bond issuers returned to the market on Tuesday with the first deals of 2017. Two €1.5bn 10 year transactions showed that borrowers are prioritising the tougher, longer duration deals and, while conditions permit, issuing in large size.

    • 03 Jan 2017
  • Covered bonds play key role with regulatory funding in focus

    Covered bonds will continue to be a crucial instrument in any bank treasurer’s funding tool kit in 2017. However, the more necessary focus will be on bail-inable senior unsecured funding. Bill Thornhill reports.

    • 01 Jan 2017