Covered Bonds - All Articles

  • Financials boss Edison to retire from EBRD

    Noel Edison, a veteran banker who has run the European Bank for Reconstruction and Development's financial institution operations since joining in 2010, is retiring from the development bank.

    • 27 Sep 2018
  • MMB's debut covered bond struggles

    Despite a wide double digit starting spread, My Money Bank’s (MMB) inaugural covered bond was unable to get the necessary traction to build a convincing trade, and, by noon, the deal was only 80% subscribed. The deal was subsequently postponed.

    • 27 Sep 2018
  • BNPP Pandbrieven builds slowly in difficult mart

    BNP Paribas Fortis managed to get an oversubscribed order book for its seven year covered bond and priced the deal inside the previous Belgian issue from ING. However, the deal was unusually slow to build and, with market conditions deteriorating, spreads are expected to widen.

    • 27 Sep 2018
  • LBP achieves ‘impressive’ result in tough market

    La Banque Postale (LBP) won plaudits from rival bankers for its comfortably oversubscribed €750m covered bond which was priced with a modest new issue concession, despite the challenging 10 year tenor, competition with other agency supply and, most importantly, a much reduced order from the Eurosystem.

    • 26 Sep 2018
  • Mediobanca sells €250m OBG tap

    Mediobanca has privately placed a €250m tap of its Obbligazioni Bancarie Garantite six year deal issued in July.

    • 26 Sep 2018
  • KHFC to issue Asia's first social covered bond

    Korea Housing Finance Corporation (KHFC) has mandated leads for its first covered bond secured on mortgages with a social cause. For the first time, the borrower is open to issuing in euros.

    • 25 Sep 2018
  • Skipton successfully issues first euro covered

    Skipton Building Society’s inaugural euro denominated covered bond attracted strong demand, with the generous starting spread securing early order book momentum.

    • 25 Sep 2018
  • ECB tapers as DKB issues first social deal

    The European Central Bank has reduced the maximum size of its orders in the primary covered bond market from 30% to 10%, based on the evidence of a €500m 10 year social Pfandbrief issued on Tuesday by Deutsche Kreditbank (DKB).

    • 25 Sep 2018
  • ASB finds new names as Commerz' gets by

    Two €500m deals issued by Commerzbank and ASB Finance went well enough. The New Zealand deal attracted new investors and hit the issuer’s funding target. However, Commerzbank was unable to tighten pricing by much, underscoring the impression that market sentiment had deteriorated slightly.

    • 24 Sep 2018
  • Crédit Ag’ finds favour in fours and 20s

    Crédit Agricole attracted strong demand for its four and 20 year two part covered bond on Friday, partly reflecting the prudent choice of tenors.

    • 21 Sep 2018
  • Introducing the Covered Bond Marker

    The Covered Bond Marker is a confidential survey designed to show what the market really thinks about the latest covered bond deals. Market participants are cordially invited to mark a range of recently priced euro benchmarks.

    • 21 Sep 2018
  • Credem hits covered bond road after long gap

    Credito Emiliano (Credem) is planning a series of fixed-income investor meetings from October 1 to reintroduce its soft bullet covered bond programme.

    • 20 Sep 2018
  • PBB scales up in sterling covered bonds

    Deutsche Pfandbriefbank (PBB) this week attracted greater demand than Aareal Bank for its December 2021 sterling Pfandbrief, even though it was priced at the same spread and had a lower credit rating. Both deals had a lot of German demand reflecting a sterling’s pick-up to euros.

    • 20 Sep 2018
  • ING Belgium enjoys exceptional covered bond bid

    ING Belgium's order book for a €1bn eight year issued on Thursday was larger than any for a covered bond of this size since January. The exceptionally strong bid is something that other issuers will look to take advantage of before Eurosystem purchases are scaled back again.

    • 20 Sep 2018
  • Covered bond traders positive on outlook despite ECB taper

    Even though it’s likely the European Central Bank will lower purchases of covered bonds before long and despite a relatively busy pipeline, dealers are sanguine about the outlook for spreads.

    • 19 Sep 2018
  • Covered bond awards 2018 photos

    GlobalCapital’s 12th annual covered bond awards took place this year at BMW Welt in Munich on Thursday, September 13. The awards reflected the judgment of almost 400 market participants, including 170 investors, who reported buying €100bn of covered bonds in the past 12 months and with over €600bn in covered bond assets under management.

    • 19 Sep 2018
  • NN Bank unearths good covered bond demand for 10 year

    Nationale-Nederlanden Bank (NN Bank) returned to the covered bond market for the second time this year to issue a comfortably oversubscribed €500m 10 year conditional pass through structure that was priced 1bp tighter than where NIBC Bank issued a similar deal two weeks ago.

    • 18 Sep 2018
  • Helaba just gets over the Pfandbrief line

    Landesbank Hessen-Thüringen Girozentrale (Helaba) attracted a thinly oversubscribed order book for a €1bn seven year mortgage Pfandbrief issued on Tuesday. Even though the bonds offered a generous premium to their own curve, they were priced much tighter than other recent seven year benchmarks.

    • 18 Sep 2018
  • Additional currencies to HTT hints at covered bond growth potential

    The European Covered Bond Council (ECBC) has updated and enhanced its Harmonised Transparency Template (HTT). The addition of two new currencies implies scope for more covered bond issuers, potentially from a new jurisdiction.

    • 18 Sep 2018
  • Covered Bond Awards 2018: voting distribution

    The distribution of the votes for the 2018 Covered Bond Awards.

    • 18 Sep 2018
  • ECBC flags ‘critical’ areas for covered directive

    The European Mortgage Federation — European Covered Bond Council (EMF-ECBC) has reached consensus on four critical areas of concern in response to a draft report from the European Parliament’s Economic & Monetary Affairs Committee (ECON) on the European Commission’s proposals for a covered bond legislative framework.

    • 17 Sep 2018
  • Moody's hails Lloyds' Sonia deal as 'essential' for markets

    Moody's has praised Lloyds Bank’s first sterling Sonia-linked covered bond for being an "essential" development that will help to create a market for similar deals and limit disruption from the move away from Libor.

    • 17 Sep 2018
  • NN Bank mandates as Aareal issues in sterling

    Nationale Nederlanden Bank has mandated leads for a 10 year euro denominated conditional pass through (CPT) covered bond and Aareal Bank has issued a fixed rate sterling Pfandbrief.

    • 17 Sep 2018
  • SSA and covered bond trader returns to desk after investigation

    An SSA bond and covered bond trader who was on indefinite leave from his desk following the launch of an investigation into the SSA market by the US Department of Justice in 2015 is back at work, GlobalCapital understands. His return has come as a US court dismissed a lawsuit related to the investigation.

    • 17 Sep 2018
  • GlobalCapital Covered Bond Awards 2018: the winners

    The Cover and GlobalCapital held the annual Covered Bond Awards Dinner on Thursday night at BMW Welt in Munich, celebrating the best performers in the market.

    • 14 Sep 2018
  • My Money Bank mandates for debut covered

    After becoming the first private equity firm to obtain a banking licence in France, the Cerberus-owned My Money Bank (MMB) SCF has appointed joint leads for a roadshow, with a view to issuing its debut euro-denominated Obligations Foncières.

    • 13 Sep 2018
  • Covered bond mart puts on brave face ahead of tapering

    Covered bond spreads are expected to widen, but the tone was hardly apocalyptic at the ECBC/Euromoney covered bond conference on Thursday.

    • 13 Sep 2018
  • Brazilian banks almost at covered bond starting line

    As the market waits for Brazilian banks to launch the first covered bonds out of the country, market participants from the country say it provides the lenders with a useful new instrument. But whether they can reach investment grade status in euros or dollars depends on currency risk mitigation, according to a Moody’s official.

    • 13 Sep 2018
  • Covered bond asset eligibility is the ‘mother of all discussions’

    Negotiations between the European Parliament, the European Commission and the covered bond industry around asset eligibility are like trying to “put a square peg in a round hole” and have proved to be the “mother of all discussions”, said key representatives of the two organisations at the European Covered Bond Council’s (ECBC) 28th Plenary Meeting in Munich on Wednesday.

    • 12 Sep 2018
  • DKB, Skipton Building Society line up in covereds

    Deutsche Kreditbank and Skipton Building Society both announced mandates for euro-denominated covered bonds on Wednesday, with DKB’s to come as its debut social bond.

    • 12 Sep 2018
  • German minister urges capital market progress

    Jörg Kukies, secretary of state at the German Ministry of Finance, suggested that the EU’s proposed covered bond directive should not dilute the quality of the product too much. He also wanted to see developments on the Capital Market Union (CMU) by the end of the year and called for an agreement on third-country central counterparties (CCPs).

    • 12 Sep 2018
  • Santander UK pays ‘Brexit premium’ on euros as it makes Sonia debut

    Santander UK needed to offer an unusually attractive concession for its second euro covered bond deal of the year, but priced its first sterling Sonia-linked deal in line with Lloyds.

    • 11 Sep 2018
  • Vorarlberg proves popular for debut Pfandbrief

    Raiffeisenlandesbank Vorarlberg issued its inaugural covered bond on Monday which, despite offering a modest concession, was the most oversubscribed benchmark Austrian transaction since May.

    • 10 Sep 2018
  • Lloyds and RBC show investors lust after Sonia

    Lloyds Bank attracted stellar demand for the first Sonia-linked trade from a FIG borrower. The covered bond format was swiftly followed by a senior unsecured deal from Royal Bank of Canada. Bill Thornhill reports.

    • 06 Sep 2018
  • Wüstenrot pays limited NIP despite small size

    Wüstenrot Bausparkasse issued a €250m eight year Pfandbrief and, though it was smaller and attracted less demand than its debut deal, the new issue premium was tight.

    • 06 Sep 2018
  • Covered industry sides with EC, snubs rapporteur

    The European covered bond industry this week rejected most of the recommendations for the covered bond directive made by the European Parliament Committee on Economic and Monetary Affairs’ rapporteur, Bernd Lucke. However, there is agreement on one important point.

    • 06 Sep 2018
  • Covered primary pace slows as Lloyds issues first Sonia FIG trade

    Lloyds Bank found strong demand for the first Sonia-linked sterling transaction from a financial institution. Meanwhile the euro covered bond market ground to a standstill with just Wüstenrot Bausparkasse mandating leads for a sub-benchmark deal.

    • 05 Sep 2018
  • SRI Award Winners 2018 revealed

    GlobalCapital announced the winners of its Sustainable and Responsible Capital Markets Awards 2018 in Amsterdam on Tuesday evening. This year’s two sovereign debut green finance issues, from Indonesia and Belgium, won Deals of the Year in their regions, and there were double laurels for Danone, in both the bond and loan markets.

    • 05 Sep 2018
  • Deutsche finds good Cédulas demand

    Deutsche Bank was easily able to issue a €1bn five year Cédulas on Tuesday, alongside NIBC Bank which sold a €500m 10 year CPT deal, with both offering generous new issue concessions. On the same day, Aareal Bank and Commerzbank issued tightly priced Pfandbriefe.

    • 04 Sep 2018
  • Lloyds prepares first Sonia-linked FIG benchmark amid covered flurry

    Lloyds Bank is set to bring the first ever FIG benchmark linked to Sonia on Tuesday, alongside three issuers bringing euro benchmarks and one selling a tap.

    • 03 Sep 2018
  • Covered bond trio suggest smooth ECB exit

    Covered bond deals sold on Monday by Compagnie de Financement Foncier (CFF), United Overseas Bank (UOB) Singapore and Deutsche Hypo were all well received and suggested that the European Central Bank’s (ECB) planned end of the covered bond purchase programme is not a cause for concern.

    • 03 Sep 2018