Covered Bonds - All Articles

  • HSBC Canada and Isbank press ahead with covered bond plans

    Turkiye Is Bankasi (Isbank) recently signaled its intention to issue, while HSBC Canada has registered a covered bond corporate entity.

    • 29 Mar 2018
  • Covered bonds reach for a new standard

    Buyers, sellers and arrangers gathered together in March, in the wake of the European Commission proposing its Covered Bond Directive, for the GlobalCapital/Crédit Agricole CIB covered bond roundtable to debate how the market would fare as the European Central Bank withdraws its quantitative easing programme.

    • 29 Mar 2018
  • Valiant shows Swiss franc covered are in demand

    Valiant Bank returned to the market last week to issue its second covered bond transaction which, like its first deal, was denominated in Swiss francs. Being double the size of the first deal, it showed potential demand for more.

    • 28 Mar 2018
  • Higher recovery favours CPT covered bonds

    Covered bond investors would be better off ensuring a full recovery and maturity extension than accepting a partial recovery and claiming the remainder from the insolvency estate of the issuer, according to delegates who voted at the IMN conference in London on Tuesday.

    • 28 Mar 2018
  • Cut in CBPP3 buying is start of new strategy

    The European Central Bank’s (ECB) recent decision to cut primary market orders for the covered bond purchase programme (CBPP3) is part of a long term tapering strategy that it is set to continue, delegates at the IMN covered bond conference in London heard on Tuesday.

    • 27 Mar 2018
  • Covered concession a 'small price to pay'

    Primary activity is likely to improve after the Easter break but bankers are telling issuers that covered bond new issue premiums are ‘a small price to pay’ in the context of much larger senior unsecured new issue concessions.

    • 26 Mar 2018
  • Market agog: has ECB started tapering covered purchases?

    Covered bond specialists are eager to find out whether the European Central Bank’s lower than expected participation in recent covered bond issues is part of a long term plan or is merely a short term reaction to other events.

    • 22 Mar 2018
  • Green bonds are a catalyst for wider action, say issuers

    Funding officials said green bonds had stimulated other sustainability work across their organisations at the Climate Bonds Initiative conference in London on Tuesday.

    • 21 Mar 2018
  • BNS returns in euros to price cheap to covered curve

    Bank of Nova Scotia (BNS) was this week obliged to pay a generous new issue premium for its second euro benchmark of the year, reflecting weaker credit conditions, investor indigestion and its desire to issue in large size.

    • 21 Mar 2018
  • FIG investors push markets wider

    Investors are receiving a decent concession to buy new paper in the FIG market, and this has encouraged them to jump out of outstanding bonds, thus widening the curve further for new issuers. And covered bonds buyers are also gaining the upper hand, as the European Central bank pulls out.

    • 21 Mar 2018
  • Lloyds funds cheaply in sterling for third covered return

    Lloyds Bank issued its third covered bond of the year on Tuesday and its second in sterling, paying a fraction of the premium seen in the senior unsecured market, despite the large deal size.

    • 20 Mar 2018
  • Covered investors reject tight spreads as ECB cuts

    Covered bond investors have “had enough of tight spreads" said a lead manager. as demonstrated on Tuesday by the contrasting fortunes of deals from Lansforsakringar Hypotek AB (LF Hyp) and Aareal Bank. At the same time, the European Central Bank continued to scale back its order.

    • 20 Mar 2018
  • Aareal mandates as ECB cuts CBPP3 orders

    Aareal Bank mandated leads for a six year Pfandbrief on Monday, amid evidence that the European Central Bank has started to cut back orders for the covered bond purchase programme (CBPP3).

    • 19 Mar 2018
  • Deutsche Hypo issues first sterling Pfandbrief

    Deutsche Hypo followed other German lenders into the UK market to price its first covered bond in sterling on Thursday. The deal was priced just 7bp inside where SEB issued an unsecured FRN on the same day.

    • 15 Mar 2018
  • PKO enjoys highest subscription ratio on busy day

    PKO Bank Hipoteczny may not have attracted the most overall demand in Thursday’s packed issuance window, but its covered bond was notable for having the highest spread and strongest subscription ratio of the five deals in the market.

    • 15 Mar 2018
  • Lloyds covereds fly with positive premium

    Lloyds issued its first euro covered bond in almost two years on Thursday, helping to assuage Brexit concerns by pricing the €1bn seven year with a positive spread to mid-swaps.

    • 15 Mar 2018
  • BNPP Fortis navigates crowded covered mart

    BNP Paribas Fortis managed to attract decent demand for its €750m 10 year covered bond this week, despite a plethora of competing issuance scaling back of interest from the Eurosystem, and an increasingly picky and nervous investor base demanding ‘last looks’ in book building.

    • 15 Mar 2018
  • WL Pfandbrief starts tight and struggles

    WL Bank was unable to secure much private demand for a €500m 10 year on Thursday, yet managed to get over the finishing line with much some help from the Eurosystem, though it was less than might have been expected.

    • 15 Mar 2018
  • WL, PKO and Deutsche Hypo announce covered bond mandates

    The primary market was quiet on Wednesday, but activity looks set to improve as a trio of issuers from Poland and Germany mandated joint lead managers for benchmark covered bonds — to be issued in euros and sterling on Thursday.

    • 14 Mar 2018
  • ECBC, VDP give guarded welcome to covered bond directive

    The European Covered Bond Council (ECBC) and Association of German Pfandbrief Banks (VDP) have given a guarded welcome to the European Commission’s proposed covered bond directive, but analysts have raised a number of questions.

    • 14 Mar 2018
  • Investors decry Aviva’s pref share cancellation notice

    The preference share market has plummeted in value after Aviva told investors it might seek to cancel its instruments at par.

    • 14 Mar 2018
  • Could the covered bond directive backfire?

    The eagerly awaited European 'Covered Bond Directive' was supposed to ring-fence the quality of covered bonds by clearly defining the assets that are eligible for the cover pool. But the proposal risks diluting the quality of the product.

    • 13 Mar 2018
  • Helaba pays up in fives for Pfandbrief return

    Landesbank Hessen-Thüringen (Helaba) has returned to the Pfandbrief market for the second time this year to issue a dual tranche offering, with the shorter five year part pricing 3bp wider than a six year launched a few weeks ago.

    • 13 Mar 2018
  • BayernLB returns and pays Pfandbrief premium

    Bayerische Landesbank (BayernLB) issued a €500m seven year in line with recent German Pfandbrief this week, but with a generous pick-up of 5bp compared with its own more illiquid curve.

    • 12 Mar 2018
  • Commission’s covered bond proposal lacks detail on assets

    The European Commission’s proposals for a principles-based covered bond directive have been broadly welcomed, but the lack of detail on assets that might be eligible for covered bonds has caused concern.

    • 12 Mar 2018
  • FIG secured supply surge to follow end of TFS

    UK bank treasurers, facing Brexit uncertainty, incoming ring-fencing rules and the struggle to meet regulatory funding ratios now have another hurdle to consider: the refinancing of debt drawn under the Bank of England's Term Funding Scheme (TFS). Bill Thornhill looks at what will fill the finding gap.

    • 08 Mar 2018
  • Vakif places €800m covereds, others seen

    Vakifbank has privately placed its third Turkish lira denominated covered bond to international investment banks. The deals, which provided competitive long-term funding and came in response to onerous swaps market regulation, are likely to be mimicked by Turkey’s other main lenders.

    • 08 Mar 2018
  • PBB takes fives in size

    Deutsche Pfandbriefbank’s (PBB) decision to issue a five year covered bond this week, instead of the more usual staple of seven or eight year deals, meant it was able to issue in a larger than normal size and pay little new issue premium.

    • 08 Mar 2018
  • VW announces new auto ABS as Dutch and UK RMBS gain traction

    VW Finance has announced a new auto ABS transaction, while Charter Court has set guidance on its latest UK RMBS and Elan Woninghypotheken’s latest Dutch RMBS is set to be priced.

    • 07 Mar 2018
  • OCBC trails UOB in sterling covered bonds

    Oversea-Chinese Banking Corp issued a five year sterling floating rate bond on Wednesday but was unable to match the size or spread of United Overseas Bank, which recently issued the first Singaporean covered bond in sterling.

    • 07 Mar 2018
  • Bank of Ireland covereds enjoy rarity appeal

    Bank of Ireland enjoyed strong demand for its first covered bond issue for over two years on Wednesday, pricing the deal at its tightest spread over the French covered bond market since the sovereign credit crisis.

    • 07 Mar 2018
  • Macro fears turn FIG into a ‘hit or miss’ market

    Rising uncertainty around the global macroeconomic outlook has been feeding into the financial institutions bond market in recent weeks, pushing new issue premiums higher and forcing investors to become more selective about the bonds they invest in.

    • 07 Mar 2018
  • BOI looks to reopen Irish mart as OCBC eyes sterling

    Bank of Ireland is planning to bring the first covered bond from Ireland in over two years, while Overseas Chinese Banking Corporation is lining up a debut trade in sterling.

    • 06 Mar 2018
  • NBC and Commerz navigate sevens in tricky market

    National Bank of Canada and Commerzbank both came to the market with seven year covered bonds on Tuesday.

    • 06 Mar 2018
  • Commerzbank selects sevens for no-grow Pfandbrief

    Commerzbank has mandated joint leads for a seven year mortgage backed Pfandbrief.

    • 05 Mar 2018
  • TD goes large in euro covereds at record spread

    Toronto Dominion Bank this week issued a €1.25bn short five year euro covered bond with a modest concession that matched the record tightest Canadian euro covered bond spread, albeit with a rather low subscription ratio.

    • 05 Mar 2018
  • Covered bond directive end day approaches

    The European Commission's College of Commissioners is expected to vote on the long-expected pan-European covered bond directive soon and the final paper is due around mid-March. Though it is likely that reforms will be needed, these are not expected to present a major challenge said bankers closely involved with the process.

    • 02 Mar 2018
  • KBC issues first Belgian covered bond of 2018

    KBC became the first Belgium bank to issue a covered bond this year, attracting moderate demand despite a seemingly generous new issue premium.

    • 01 Mar 2018
  • HSH’s sale to boost Pfandbrief market access

    The German Laender owners of HSH Nordbank sold the bank this week in a move that bodes well for the performance of its Pfandbriefe and may improve its market access, said analysts at Commerzbank.

    • 01 Mar 2018
  • Yapi Kredi issues green covered bond

    Yapi Kredi has privately placed Turkish mortgage backed covered bonds to the European Bank for Reconstruction and Development (EBRD) and Clean Technology Fund (CTF) to promote energy saving improvements in the financial sector.

    • 01 Mar 2018