Covered Bonds - All Articles

  • Deutsche Hypo prepares to issue green Pfandbrief

    Deutsche Hypo has mandated joint leads for a green Pfandbrief to be issued off its mortgage Pfandbrief programme.

    • 31 Aug 2018
  • Covered bond timing is everything

    The covered bond market has a reputation for allowing tough trades to be done, so when My Money Bank postponed its debut deal, the product was imprudently tarnished. The situation could have been avoided had the deal been launched a week earlier or sometime later — just not last week.

    • 31 Aug 2018
  • ECB boosts appeal of covered bonds

    In response to the European Commission’s draft covered bond directive, the European Central Bank has set out a number of recommendations that should boost the appeal of covered bonds for investors, though not necessarily with issuers.

    • 30 Aug 2018
  • RBC reinvigorates covered bond market

    Royal Bank of Canada boosted sentiment in the covered bond market on Thursday with a tightly priced €1.5bn seven year. At the same time Société Générale issued a defensively priced and well subscribed €750m five year.

    • 30 Aug 2018
  • RBC to properly test covered bond appetite

    After a plethora of small deals, the covered bond market look set for a proper test of appetite as Royal Bank of Canada prepares to issue a seven year euro denominated covered bond.

    • 29 Aug 2018
  • Credit Ag’s covered draws limited demand

    Demand for a new Credit Agricole €500m public sector seven year covered bond this week was weak, but bankers are confident that sentiment is set to remain broadly constructive.

    • 29 Aug 2018
  • Impact joins risk and reward as third axis of ESG investing

    Environmental, social and governance investors have done a fine job of making their approach accepted and now mainstream in a money-driven industry. Along the way, they started saying it was all pragmatic, not about principles. That was a fiction, and under the pressure of climate change, it is being replaced with a more rounded philosophy. Jon Hay reports.

    • 29 Aug 2018
  • Green-minded banks grapple with climate change

    Markets are not prepared for climate change, which is expected to have severe economic consequences. Event risk, leading to credit risk and political action, will spur dramatic change, that could create a new low carbon economy. Climate change mitigation will eventually come to bear on all aspects of society, in the form of regulatory and fiscal incentives and disincentives. Having a green and sustainable action plan is therefore likely to become core to the strategy of every financial institution.

    • 29 Aug 2018
  • Covered bond trio mandate leads

    DZ Hyp has mandated leads for a non-deal roadshow, RLB Vorarlberg has mandated leads to roadshow its first covered bond, and ASB Finance has also appointed leads for a series of investor meetings.

    • 28 Aug 2018
  • Noe gets tight covered pricing, BayernLB better bid

    Hyp Noe’s tightly priced €500m Aa1 rated seven year covered bond issued on Tuesday was thinly oversubscribed, in contrast to a similar sized triple-A rated six year from BayernLB which found greater demand despite being priced tighter and with a smaller concession.

    • 28 Aug 2018
  • Investment Association warns EC against ‘undue focus’ on environment

    The Investment Association, the trade body for UK asset managers, has published responses to two European Commission consultations on aspects of its Sustainable Finance Action Plan — the Taxonomy of environmentally sustainable economic activities and disclosures on sustainable investments and sustainability risks.

    • 24 Aug 2018
  • European Parliament sets out alternative covered bond vision

    The European Parliament has set out its version of the proposed European Covered Bond Directive, taking an alternative route to the European Commission’s plan and proposing a ‘premium’ covered bond category.

    • 23 Aug 2018
  • Intesa reopener leaves Italian peers in the dust

    Intesa Sanpaolo issued a €1bn senior bond on Thursday as it looked to get ahead of other banks, while its main competitor, UniCredit, considers doing more this year.

    • 23 Aug 2018
  • BHH rehonours jubilee as Germans add to covered issuance run

    On Thursday Berlin Hyp became the third German covered bond issuer to come to the market in three days after Deutsche Pfandbriefbank and Aareal Bank earlier in the week. It tapped its self-styled Jubilee bond.

    • 23 Aug 2018
  • RLB NÖ-Wien prints rare public sector covered

    Raiffeisenlandesbank Niederösterreich-Wien (RLB NÖ-Wien) was able to whittle down the new issue concession for its 8 year covered bond on Wednesday, but demand was weaker than for Tuesday’s two trades.

    • 22 Aug 2018
  • Eika, Aareal bring in investors for covered market restart

    Eika Boligkreditt was more than twice subscribed for its no-grow deal on Tuesday, offering German investors a decent pick-up over both Bunds and Aareal Bank, which also came to the market.

    • 21 Aug 2018
  • RLB NÖ-Wien tees up rare public sector covered

    Raiffeisenlandesbank Niederoesterreich-Wien (RLB NÖ-Wien) announced a mandate for a new trade on Tuesday, hoping that the rare product type and a fixed deal size will attract investors.

    • 21 Aug 2018
  • Eika, Aareal plan to kick off covered supply

    Eika Boligkreditt and Aareal Bank are expected to reopen the covered bond market on Tuesday, after announcing post-summer holiday mandates on Monday. Both are looking to complete seven year deals.

    • 20 Aug 2018
  • Preferred senior market bursts back into life in Germany

    German issuers have wasted little time in selling preferred senior debt, after regaining access to the funding product through a legislative change last month. Berlin Hyp reopened the market with a tightly priced but thinly subscribed deal on Monday, and Commerzbank is looking to follow close behind with a debut offering of its own.

    • 20 Aug 2018
  • Berlin Hyp to bring first preferred senior after German law change

    Berlin Hyp is set to become the first German bank to sell a preferred senior bond after issuers regained their access to the funding tool through recent legislative changes.

    • 17 Aug 2018
  • It’s a nexus, not a doom loop

    The sovereign credit crisis spurred lawmakers to undertake a number of major initiatives designed to sever the ‘doom loop’ — the link between sovereign and bank credit risk. Recent events in Italy and Turkey show the limits of these policies, but not their impotence.

    • 16 Aug 2018
  • Regulators mull climate risk charge in Pillar 2

    The banking industry has largely backed efforts to use sustainable financing to cut capital charges through a ‘green supporting factor’. But regulators may use the stick, as well as the carrot, through temporary capital add-ons for dirty lending — something the financial industry is unlikely to welcome.

    • 16 Aug 2018
  • Pfandbrief issuers likely to move first

    Covered bond primary activity is expected to pick up from as early as next week with a couple of German issuers understood to be monitoring the market. FIG activity is predicted to ratchet up again the following week as borrowers move in advance of potentially negative rating news.

    • 16 Aug 2018
  • Looming Italy crisis puts Turkey woes in perspective for Europe

    Fears about the Turkish exposures of European banks have done little to distract fixed income investors from a brewing crisis in Italy. They may even have sharpened focus on the scale of the problems facing the country.

    • 15 Aug 2018
  • Carige covereds narrowly miss being junked

    Moody’s downgraded Banca Carige’s residential mortgage backed covered bonds this week, but kept them in investment grade territory. Spreads barely moved in the aftermath, suggesting investors have already sold their exposure.

    • 15 Aug 2018
  • Harmonisation ‘will lift Austrian covered bonds’

    Austria’s Ministry of Finance will finally set out draft proposals to harmonise the country’s three covered bond legal frameworks early in 2019 after years of deliberations. And, with the introduction of new measures that bring the unified law into line with best practice, rating upgrades are likely.

    • 14 Aug 2018
  • Ålandsbanken plans debut senior bond sale ahead of MREL

    Ålandsbanken, a small bank headquartered in the Åland Islands, an autonomous region in Finland, is seeking to launch its first public sale of a senior bond as part of a drive towards meeting its minimum requirement for own funds and eligible liabilities (MREL).

    • 14 Aug 2018
  • Fitch upgrade bodes well for Greek covered bonds

    After Fitch upgraded Greece’s country ceiling into investment grade territory last Friday, the covered bond ratings of National Bank of Greece and Alpha Bank should also improve with spreads on Alpha's recent five year having the best potential to tighten.

    • 13 Aug 2018
  • GlobalCapital SRI Awards 2018: the nominations

    The nominations for GlobalCapital's Sustainable and Responsible Capital Markets Awards 2018 have been revealed, as a result of our worldwide market poll, conducted in July.

    • 11 Aug 2018
  • Impact of OBG legal amendment may be limited

    The Bank of Italy’s (BoI) proposal to loosen Obbligazioni Bancarie Garantite (OBG) issuance restrictions should be credit positive for the country’s small banks said Fitch in a report on Friday. Despite that, an improvement in distributed supply may prove limited.

    • 10 Aug 2018
  • OBG supply possible after summer but issuers in no hurry

    Italian FIG supply is likely to remain limited over the rest of this year as Parliamentary budget negotiations and concerns over the presentation of Banca Carige’s capital conservation plan raise deal execution risk. However, one or two covered bond deals cannot be ruled out.

    • 09 Aug 2018
  • Carige covered bonds may lose IG status, but buying opportunity seen

    Banca Carige’s covered bonds could soon be downgraded by Moody’s to sub-investment grade territory but, given the size and quality of the collateral pool, further downgrades could present a buying opportunity.

    • 08 Aug 2018
  • Kiwi covereds to widen, but not due to affordability

    Despite a deterioration in the affordability of housing in New Zealand, loan-to-value ratios are low and homes are comparatively more affordable than they are in much of Europe. Even though credit risks remain contained, it seems likely that spreads in the New Zealand covered bond market are set to be repriced wider.

    • 07 Aug 2018
  • Covered bonds can green Italy’s economy

    Green Italian bond supply has good scope to grow, and banks are likely to play a central role in the rise, according to Standard and Poor’s. Given the old age of Italy’s building stock and the importance of financing for small and medium-sized enterprises (SMEs), green covered bonds and green European Secured Notes could play a vital part.

    • 06 Aug 2018
  • Covered bond directive may strengthen Cédulas, giving cover for other reforms

    Transposing the European Commission’s covered bond directive into Spanish Cédulas law should result in multi-notch Cédulas upgrades, Fitch said. This could help allay concerns about other legal reforms that will lower collateral protection, and help boost confidence that the impending overhaul of the Spanish legal framework can be executed deftly.

    • 03 Aug 2018
  • ING Australia set to issue debut covered bond

    Fitch has assigned an AAA rating to the debut covered bond programme of ING Bank in Australia (INGBA).

    • 02 Aug 2018
  • NatWest Markets fights back in FIG

    NatWest Markets has come a long way since the dark days of its repeated restructurings. For a while, RBS was a punchline for gallows humour about the state of investment banking (not to mention the participation of the state in investment banking). Senior bankers jumped or were pushed, while the firm closed offices, sold off its US operations, trimmed its ambitions and seemed ready to settle down as a bit-part domestic player in the capital markets. But it is often darkest before the dawn.

    • 02 Aug 2018
  • DZ merger creates biggest Pfandbrief issuer

    The merger between DG Hyp and WL Bank has become legally effective and the rebranded entity, DZ Hyp, is now the largest German Pfandbrief issuer.

    • 01 Aug 2018
  • Moody’s gets upbeat on green covered bonds

    The green covered bond market looks set for growth, possibly even outpacing the broader green bond market, said Moody’s in a report this week.

    • 01 Aug 2018