Covered Bonds - All Articles

  • Canadian covereds uplifted despite collateral woes

    An exemption for Canadian covered bonds from bail-in is positive, said Fitch this week despite a general concern about the lack collateral available in some covered bonds, and an overvalued Canadian housing market.

    • 31 Jul 2018
  • NBG hits covereds as Moody’s gets positive

    National Bank of Greece has sold a €200m five year covered bond to the European Investment Bank (EIB) just as Moody’s changed its outlook on the Greek banking sector to positive.

    • 30 Jul 2018
  • The ESN stalking horse

    The concept behind the European Secured Note was never genuinely driven by a desire to improve bank funding options, but by a need to ring-fence the quality of assets in covered bonds.

    • 26 Jul 2018
  • Covered spreads to widen as supply expectations thrashed

    With €95bn issued so far this year, covered bond supply has exceeded expectations. Several analysts now suggest spreads will widen with issuance for 2018 set to reach at least €130bn.

    • 26 Jul 2018
  • EBA readies for next ESN step

    The European Banking Authority’s final report on European Secured Notes (ESNs) was published on Tuesday. It should pave the way for the European Commission to consider setting up a legal framework for the product, which may emerge at the same time as the covered bond directive in February 2019.

    • 25 Jul 2018
  • Positive covered bond credit outlook set to persist

    The constructive trend in covered bond ratings that began three years ago, and remained in place last year, is set to continue through this year said Standard & Poor’s.

    • 24 Jul 2018
  • ESNs ‘should offer value even with same treatment’

    A survey conducted on behalf of the European Commission suggests European Secured Notes (ESNs) would have to offer investors appealing value relative value to covered bonds — even if they had exactly the same regulatory treatment. The survey comes amid speculation that the EC may opt to save time by including the ESN legal framework with the covered bond directive (CBD).

    • 23 Jul 2018
  • Covered bond directive stalls over asset eligibility

    The European Commission is expected to redraft two articles of its proposed covered bond directive (CBD), pushing back the legislation, and if there are any more hold-ups the directive could be delayed until 2020 or later, said analysts at Crédit Agricole.

    • 19 Jul 2018
  • Relative value helps draw demand for BPM

    Banco Popolare di Milano (BPM) attracted a bit more demand for a covered bond it issued this week than the previous two Italian deals, as the relative value compared to Italian government bonds was more attractive.

    • 18 Jul 2018
  • NBC rides attractive dollar swap for cheap euro funding

    National Bank of Canada went to the euro market on Tuesday for funding levels that it would not have been able to match in dollars, joining a string of other North American issuers looking to benefit from cheap financing conditions in the currency.

    • 17 Jul 2018
  • Italy spreads move apart from rest of periphery

    Covered bonds from Italian banks underperformed those from lenders in Spain and Greece last week, although this may have partly been down to recent new issues offering significant concessions to investors.

    • 16 Jul 2018
  • Potential for record covered bond supply in 2018

    After a strong start to the year, covered bond supply is widely expected to beat expecations. Prospects for the second half of the year will depend on how credit markets behave and how issuers consider refinancing central bank term liquidity. Given these large variables, supply this year could yet prove exceptionally high.

    • 13 Jul 2018
  • Greek covereds should perform against Italian

    National Bank of Greece (NBG) won an investment grade covered bond rating this week, showing the way for European Central Bank (ECB) repo eligibility to other Greek banks. Along with a more stable fiscal and political backdrop and an imminent exit from its bail-out programme, Greek covered bonds have a good chance of outperforming Italian versions.

    • 12 Jul 2018
  • Opposing investor views on Italian risk

    Three covered bond deals issued by Italian banks in recent days have elicited a mixed reaction from investors, particularly with respect to their value compated to senior unsecured debt.

    • 11 Jul 2018
  • CBA sells first dollar covered since 2015

    Commonwealth Bank of Australia (CBA) took advantage of a 40bp spread differential to senior dollar funding this week to issue its first dollar covered bond in three years.

    • 11 Jul 2018
  • BayernLB Pfandbrief in demand, despite third visit

    Bayerische Landesbank (BayernLB) attracted more demand for its €500m nine year than Hypo Vorarlberg Bank (Vorhyp) did for its €500m eight year this week, even though the Austrian deal benefits from greater scarcity value.

    • 10 Jul 2018
  • BPER gets better OBG result than Mediobanca

    BPER Banca had slightly more success than compatriot Mediobanca on Tuesday with a defensively priced €500m five year Obbligazioni Bancarie Garantite.

    • 10 Jul 2018
  • Vorhyp and BayernLB hit eights and nines in covereds

    Hypo Vorarlberg (Vorhyp) and Bayerische Landesbank (BayernLB) have mandated leads respectively for eight and nine year €500m no-grow covered bonds.

    • 09 Jul 2018
  • NBG wins investment grade covered bond rating

    Standard & Poor’s assigned an investment grade rating to the National Bank of Greece’s (NBG) conditional pass through (CPT) covered bond programme on July 6.

    • 06 Jul 2018
  • Italian banks race to get deals done before funding window closes

    After a long hiatus, the Italian financial institution bond market exploded into life with week with two covered bonds and one debut unsecured transaction. Though demand was clearly more nuanced for the second covered bond, bankers were hopeful others would soon follow. Bill Thornhill and Jasper Cox report.

    • 05 Jul 2018
  • Mediobanca shows OBG demand is more nuanced

    Mediobanca followed Intesa into the Obbligazioni Bancarie Garantite (OBG) market on Thursday and, despite coming with an easier to sell shorter maturity, demand was down by almost two-thirds compared to the earlier deal. Even so, bankers have not ruled out the possibility that one or two Italian banks could soon follow.

    • 05 Jul 2018
  • HSH and RLB Oberösterreich Pfandbriefe fly

    Germany may have been kicked out of the FIFA World Cup but they still know how to issue a good Pfandbrief, according to a German lead manager who worked on HSH Nordbank’s five year Pfandbrief that was launched on Thursday alongside an Austrian deal — Raiffeisenlandesbank (RLB) Oberösterreich’s 10 year, which also achieved an excellent reception.

    • 05 Jul 2018
  • Covered Bond Awards 2018: nominations for voting shortlists now requested

    GlobalCapital requests that market participants nominate the best lead managers, issuers and deals for the voting shortlists for this year’s Covered Bond Awards. These should be submitted by July 8 and will be voted on by the market from late July to mid-August.

    • 05 Jul 2018
  • HSH Nordbank mandates Pfandbrief

    HSH Nordbank has mandated joint leads for a €500m five year mortgage backed Pfandbrief. Investors should benefit from a potential rating upgrade.

    • 04 Jul 2018
  • Stadshypotek swipes €1bn in sevens

    Stadshypotek issued a €1bn seven year on Wednesday marginally wider than where DNB Boligkreditt recently issued its much larger green inaugural deal in the same tenor. It followed a €500m five year from Sparebank Vest Boligkreditt.

    • 04 Jul 2018
  • Intesa puts ‘flag in the sand’ with market reopening covered bond

    Intesa Sanpaolo has issued the first Italian covered bond since January, reopening the market with a sizeable deal that is likely to be followed by a number of other Italian issuers.

    • 04 Jul 2018
  • Duration ‘back in play’ as Créd Ag reinvigorates with 10 year covered bond

    Crédit Agricole and Münchener Hypothekenbank (MuHyp) found good demand for their covered bonds on Tuesday, but it was Crédit Agricole’s transaction that really stood out by virtue of its size and maturity, which until now had been viewed with trepidation.

    • 03 Jul 2018
  • Vest Boligkreditt appoints leads for covered bond

    Sparebanken Vest Boligkreditt has mandated joint leads for a five year euro benchmark covered bond that will likely launch on Tuesday.

    • 02 Jul 2018
  • CFF steps back from residential mortgage financing

    Compagnie de Financement Foncier (CFF), which had financed the mortgage and public sector lending activities of Crédit Foncier and BPCE Group, will in future issue Obligations Foncières to refinance only the public sector assets of the BPCE Group.

    • 02 Jul 2018
  • BHH issues largest Pfandbrief in four years

    Berlin Hyp (BHH) was on Monday set to issue its largest covered bond in four years, and with the shortest tenor of any European deal so far this year.

    • 02 Jul 2018