Covered Bonds - All Articles

  • Investors call for more precision on covered bond asset eligibility

    The Covered Bond Investor Council (CBIC) has responded to the European Commission’s (EC) proposed covered bond directive, requesting a more precise definition of eligible assets among a number of other recommendations.

    • 30 Apr 2018
  • Austrian covered bond duo line up as pricing equilibrium nears

    Raiffeisen-Landesbank Steiermark and Hypo Oberösterreich are the only two issuers visibly planning covered bond deals, but with three major Spanish banks emerging from blackout on Friday, there is hope for more Spanish supply. In the meantime, secondary market flow has become more balanced with demand noted particularly at the long end.

    • 27 Apr 2018
  • Canada takes 'hard look' at covered bond limit

    Canada’s office of the superintendent of financial institutions (OSFI) is expected to raise limits on covered bond issuance, paving the way for additional supply from established and new names.

    • 26 Apr 2018
  • Santander hires Jonas to replace Jonas on covered trading

    Santander has hired a new covered bond trader who shares the same name as the trader it recently lost.

    • 25 Apr 2018
  • Skipton scores solid sterling success in covereds

    Skipton Building Society issued its inaugural covered bond on Wednesday at a good size and a fair spread. The sale follows a pattern of wholesale funding diversification for the borrower that began last year.

    • 25 Apr 2018
  • Rural roars with sustainable Cédulas

    Caja Rural de Navarra (CRN) priced the first Spanish covered bond in almost three months flat to its curve and with the highest subscription ratio of any investment grade (IG) covered bond issued this year. The recently upgraded sustainable offering, which was rated six notches above the Kingdom of Spain, also offered a rare spread pick-up over the sovereign.

    • 25 Apr 2018
  • It's time for a dollar covered bond resurgence

    The moribund dollar covered bond market is set for a renaissance as the cost advantage compared with other currencies and other sources of wholesale funding has improved. Issuers ought to be renewing alternative sources of demand.

    • 24 Apr 2018
  • Swedish capital ratios to suffer from mortgage rule change

    Swedbank announced in its results on Tuesday that a proposal to change the regulatory treatment of Swedish mortgages would lower its common equity tier one (CET1) ratio. The rule change will also take Swedish banks’ additional tier one (AT1) bonds closer to their trigger levels.

    • 24 Apr 2018
  • Spain to Sweden, covered bonds go green

    Caja Rural de Navarra (CRN) mandated leads on Tuesday for a €500m seven year sustainable covered bond which is likely be launched on Wednesday. At the same time, Landshypotek Bank AB mandated leads for a roadshow to present its green framework ahead of a five year Swedish krona covered bond benchmark.

    • 24 Apr 2018
  • CM-CIC issues widest French covered bond this year

    Credit Mutuel CIC issued the widest 10 year French covered bond of this year on Monday, reflecting higher net supply in 2018 compared with previous years and less central bank buying activity. But with net supply set to fall, spreads should soon stabilise.

    • 23 Apr 2018
  • ECB stays 'flexible' as covered bond purchases cut to 30%

    The European Central Bank’s Ad Visser acknowledged its "flexible" approach to covered bond purchases at the European Covered Bond Council’s plenary meeting held in Vancouver on Wednesday. His remark was made in response to a question about whether the ECB was reducing its primary market orders by 10% to a maximum of 30% of a deal’s size.

    • 19 Apr 2018
  • Sbanken, mBank prove popular for euro covered debuts

    Investors were queuing up to place orders for new deals from Norway’s Sbanken Boligkreditt and Poland’s mBank Hipoteczny on Thursday, as the pair looked to enter the euro covered bond market for the first time.

    • 19 Apr 2018
  • Rabobank matches ABN record as DG Hyp returns

    Rabobank issued two tranches of covered debt on Wednesday and was able to match ABN Amro’s record for the tightest ever 20 year spread. DG Hyp also issued a covered bond, its first since March last year.

    • 18 Apr 2018
  • Barclays rumoured as investors anticipate AT1 supply spurt

    Investors are expecting banks to accelerate their plans to sell additional tier one (AT1) bonds in the coming weeks, but a number of recent new issues have been too tightly priced to excite some market specialists.

    • 18 Apr 2018
  • Canadian bail-in to increase covered bond appeal

    Canadian covered bonds are set to become even more attractive under the country’s newly published bail-in regulations, delegates heard at the European Covered Bond Council’s 27th plenary session held in Vancouver on Wednesday. If immigration policy remains unchanged, there will be limited scope for a correction in Canadian house prices.

    • 17 Apr 2018
  • Caffil sells 10 year with pre-CBPP3 spread

    Caisse Francaise De Financement Local (Caffil) found good demand for a €1.5bn 10 year with a final spread close to what it could have achieved before the covered bond purchase programme begun. The deal followed a €1bn five year from Commonwealth Bank of Australia (CBA).

    • 17 Apr 2018
  • Sbanken markets first euro covered bond as Skipton mandates

    Skipton Building Society has mandated leads for a roadshow ahead of its first sterling benchmark covered bond, while Sbanken Boligkreditt has already begun marketing its debut euro benchmark.

    • 16 Apr 2018
  • Caffil and Hypo Finland prepare to issue covered bonds

    Caisse Francaise De Financement Local (Caffil) has mandated leads for a 10 year euro benchmark Obligation foncière, and after completing a roadshow last week, The Mortgage Society of Finland is set to open order books for sub-benchmark deal.

    • 16 Apr 2018
  • Covered volumes set to slow as Vancouver beckons

    Covered bond primary volume is expected to slow from the exceptionally busy period seen over the last two weeks, though a number of issuers are still monitoring conditions. In the meantime, market participants will be heading to Vancouver for the European Covered Bond Council’s plenary meeting and Euromoney Conference’s North America Covered Bond Forum.

    • 13 Apr 2018
  • Covered bond curve is softening in the belly

    The belly of the covered bond curve is soft with offers easy to find. Traders are hopeful that spreads will stabilise after next week’s slew of issuance but confidence is lacking. Yet there are pockets of performance if you look hard enough.

    • 12 Apr 2018
  • OCBC just gets over the covered line, SCBC does better

    Covered bonds issued by Swedish Covered Bond Corp and Overseas Chinese Banking Corp on Wednesday were thinly oversubscribed though investor preference was clearly slanted towards the most defensive five year Swedish offering.

    • 11 Apr 2018
  • Covered bond head leaves Soc Gen

    The head of covered bond origination at Société Générale is expected to leave the bank this week and is also relinquishing his role as deputy chairman of the European Covered Bond Council (ECBC).

    • 11 Apr 2018
  • Old instruments reap new rewards for FIG investors

    Legacy capital securities are proving rich pickings for specialist bank debt investors as institutions work out how to take them out of their funding structure. Meanwhile, covered bond investors are wary about their market.

    • 11 Apr 2018
  • Erste, HSBC and Axa pay up, re-price covered curves

    A trio of covered bonds issued on Tuesday attracted tepid overall demand, even though they were priced much wider than theoretical fair value. Of the three, Axa Bank’s dual tranche offering stood out as the most popular.

    • 10 Apr 2018
  • Virgin ready to issue its first covered bond

    Virgin Money could soon appear with a debut covered bond after Fitch and Moody’s assigned top ratings to its €7bn programme with the expectation of a £500m five year soft bullet deal.

    • 10 Apr 2018
  • BMO issues sterling covereds as window set to close

    Bank of Montreal raised £400m ($569m) of five year funding in covered bonds on Monday following £1bn deals from Santander UK and Nationwide last week. But with fewer sterling covered bonds redeeming after this month, primary activity is expected to slow down.

    • 09 Apr 2018
  • Commerzbank sets new pricing point as covered mandates pile up

    Commerzbank reset the pricing of its covered bond curve to a more realistic market clearing level with its €500m 10 year on Monday, as Erste Group, HSBC, Axa Bank and mBank Hipoteczny announced deals.

    • 09 Apr 2018
  • Santander UK steps into sterling covereds as Sparebank 1 lines up

    Santander UK found strong demand for a three year floating rate sterling covered bond on Friday and will be followed by Sparebank 1, which has mandated leads for investor meetings with a view to issuing a sterling five year. At the same time, SBanken Boligkreditt has mandated leads for a roadshow with a view to issuing its first euro deal.

    • 06 Apr 2018
  • Covered bonds face new pricing paradigm

    Covered bonds issued this week by Compagnie de Financement Foncier (CFF), ABN Amro and ING Bank offered premiums well in excess of any other seen this year. The three deals repriced the secondary market and set a pattern that is likely to become more established over time.

    • 05 Apr 2018
  • ‘Game changers’ see bonds take first step towards end of QE

    The European bond market this week finally showed its first acknowledgement that the end of European Central Bank (ECB) quantitative easing (QE) is nigh. Opinions are still split as to whether the bond buying will end in September or be extended to December, but new issue pricing has stepped wider regardless, write Nigel Owen and Bill Thornhill.

    • 05 Apr 2018
  • After two year gap, Nationwide scoops £1bn 5yr covered

    Nationwide Building Society issued its first sterling covered bond for two years on Thursday and showed that demand for the product was still strong as it picked up £1bn of five year funding.

    • 05 Apr 2018
  • ING enjoys solid covered bond return

    ING Bank returned to the covered bond market after a five year absence on Thursday to issue a €1.75bn 10 year deal. A generous starting premium and a rise in 10 year swap yields helped to boost demand.

    • 05 Apr 2018
  • ING returns after five year absence

    ING has mandated leads for its first covered bond in five years. Although demand for the rare credit is likely to be strong, the secondary market has continued to soften.

    • 04 Apr 2018
  • ABN prices 20 year at record tight, but reprices its curve

    ABN Amro issued the tightest ever 20 year covered bond on Wednesday, but was obliged to pay a considerable new issue premium, causing a repricing of its curve and the market.

    • 04 Apr 2018
  • Popular investors seek further disclosure in NY courts

    Bondholders involved in the resolution of Banco Popular have turned their attention towards US courts in an effort to extract further information from Santander, the bank’s new owner.

    • 04 Apr 2018
  • CFF seizes on first mover advantage

    Despite a turbulent market backdrop on Tuesday, Compagnie de Financement Foncier (CFF) took advantage of the fresh money that is usually put to work at the start of each quarter to issue a defensive €1.5bn covered bond with a ‘very generous’ starting spread.

    • 03 Apr 2018
  • ABN mandates leads for 20 year covered bond

    ABN Amro is set to return to the covered bond market with its second deal of the year and its longest so far. At the same time The Mortgage Society of Finland plans a roadshow.

    • 03 Apr 2018
  • Caffil, LBP and PBB move towards ESG covered bond issuance

    Caisse Française de Financement Local (Caffil) plans to issue its first social covered bond this year and, along with La Banque Postable (LBP), it is considering a debut green deal in 2019. Deutsche Pfandbriefbank (PBB) has green assets to fund but is biding its time. These issuers and other key market participants spoke of their sustainable finance plans in the Crédit Agricole CIB covered bond roundtable.

    • 03 Apr 2018