• Defusing TLTRO time bomb requires prudence, not hope

    From June 2019 a large chunk of debt borrowed by banks from the EU periphery under the European Central Bank’s second Targeted Longer-Term Refinancing Operations (TLTRO II) will no longer be considered stable funding. Banks should refinance that debt in the market instead of hoping for another ECB handout.

    • 15 Nov 2018
  • Brexit bedlam wrecks TSB trade, scares UK markets

    The revolt by UK politicians against the draft Brexit agreement reached by prime minister Theresa May forced TSB Bank to pull its covered bond on Thursday, with investors also selling out of positions in other UK banks. The market fallout adds a thorn to the side of other institutions from the country planning to raise financing over the coming weeks, but it may not be enough to completely shut down markets, write Bill Thornhill, Jasper Cox, Tyler Davies, Sam Kerr and Nigel Owen.

    • 15 Nov 2018
  • Liberbank’s debut Cédulas shows way out of TLTRO II

    Liberbank plans to issue its first covered bond, a transaction that will help refinance maturing debt borrowed under the European Central Bank's second Targeted Longer-Term Refinancing Operations (TLTRO). Many other banks face a similar problem, but seem to be ignoring the €399bn maturity wall that is fast approaching, writes Bill Thornhill.

    • 15 Nov 2018
  • Danske shuns headline risk with heavily oversubscribed covered bond

    A five year covered bond issued by Danske Bank’s Finnish subsidiary on Thursday was the most oversubscribed triple A rated covered bond issued since late August and suggested that recent negative headline risk had barely affected sentiment in euros.

    • 15 Nov 2018
  • TSB pulls covered bond as Brexit volatility weighs in

    Despite offering an attractive premium, TSB Bank was unable to garner enough interest for its five year sterling covered bond on Thursday, forcing it to postpone the deal. The decision followed a high level UK government resignation that caused considerable market volatility in the UK banking sector.

    • 15 Nov 2018
  • Trio of covered bond borrowers plan deals

    Liberbank plans to issue its first covered bond, Danske Bank in Finland is set to issue its first deal in three years and UniCredit Austria has announced a roadshow hot on the heels of a Pfandbrief issued by the German subsidiary.

    • 14 Nov 2018
  • HSBC Canada set to issue debut covered bond

    HSBC Canada has mandated joint leads for its first covered bond and held investor meetings on Tuesday. The moves comes after a succession of successful dollar benchmarks from European and Canadian borrowers.

    • 14 Nov 2018
  • PBB hits LCR target with $600m Pfandbrief

    A Deutsche Pfandbriefbank three year Reg S dollar benchmark may have been meagrely oversubscribed on Tuesday but, at $600m, it was just large enough to make it over the size threshold required to meet the top liquidity coverage ratio category — to the benefit of certain investors.

    • 13 Nov 2018
  • UniCredit AG does well to raise €750m Pfandbrief

    UniCredit’s German subsidiary, HVB, did well to issue a €750m seven year Pfandbrief on Tuesday, but with Italian headline risk flaring up again, it may have paid slightly over the odds.

    • 13 Nov 2018
  • HVB and PBB to hit euro and dollar Pfandbriefe

    UniCredit’s German subsidiary, HVB, has announced plans to issue a seven year euro benchmark Pfandbrief, its first covered bond in over a year. At the same time Deutsche Pfandbriefbank (PBB) plans to issue a dollar benchmark three year Pfandbrief.

    • 12 Nov 2018
  • Covered spreads to stabilise from Q2 2019

    A comparison of the redemption schedule for core European covered bonds versus redemptions from the European Central Bank’s asset purchase programme suggests that spreads in the asset class will start to stabilise in May 2019, after suffering a period of widening.

    • 12 Nov 2018
  • YBS matches Coventry as Sonia hopes stay strong

    Yorkshire Building Society (YBS) broadened its investor base on Friday with its first sterling covered bond in six years. The deal was set to price in line with a similar five year Sonia-linked bond issued this week by Coventry Building Society but with less demand. Even so, supply hopes remain alive.

    • 09 Nov 2018
  • DBS to hit dollar covered bonds after three year hiatus

    DBS Bank is planning a roadshow ahead of its first dollar covered bond in over three years, and the first from a Singaporean bank since February 2017. The expected deal follows two large Canadian benchmarks and shows that dollar covered bond funding is becoming more compelling than euros.

    • 09 Nov 2018
  • Demand for ESNs likely, but supply in doubt

    A feasibility study on prospective issuance of European Secured Notes (ESN) — a dual recourse structure that works like a covered bond — suggests good potential for demand but limited scope for supply. Even so, setting up a legislative framework is probably a good idea as circumstances may change, the study has concluded.

    • 08 Nov 2018
  • DNB pre-funds with covered bonds in size

    DNB Boligkreditt took the opportunity on Wednesday to pre-fund as the start of next year is expected to be volatile. The DNB Bank subsiduary issued one of the largest five year covered bonds of 2018. Despite its large size, the deal was priced with a tight new issue concession.

    • 07 Nov 2018
  • Bank of Nova Scotia serves up rare offering to Swiss market

    Bank of Nova Scotia (BNS) offered Swiss investors a rare chance to buy its debt with a seven year covered bond from a rare name on Tuesday.

    • 07 Nov 2018
  • Coventry issues first Sonia-linked financial five year

    Coventry Building Society became the first financial institution to issue a five year Sonia-linked covered deal on Tuesday, just beating Yorkshire Building Society (YBS) to the punch.

    • 06 Nov 2018
  • DZ Hyp issues first Pfandbrief under new brand name

    DZ Hyp this week issued its first Pfandbrief following the merger of DG Hyp and WL Bank. At €1bn, the deal was larger than most and, though it was priced much tighter than a range of non-German seven year deals, it did land at the widest level for a German bank of this rating in over two years.

    • 06 Nov 2018
  • Yorkshire, Coventry, Lloyds and DZ Hyp embark on series of covered bond firsts

    Yorkshire Building Society (YBS) and Coventry Building Society have mandated leads for the first five year Sonia-linked covered bonds, Lloyds is out with the first Reg S dollar covered bond from a UK issuer in years, and DZ Hyp has mandated leads for the first deal under its new brand name. Elsewhere, Bank of Nova Scotia has opened order books for a three year sterling tap.

    • 05 Nov 2018
  • Mixed hopes for November covered bond supply

    Covered bond spreads are likely to be wider in January when supply typically peaks, making a good argument for pre-funding this November and giving optimism to some bankers. However, while there are a few projects slated for next week, other bankers do not believe an avalanche of deals is likely.

    • 02 Nov 2018
  • Covered bonds offer SMBC a ‘new level of stability’

    Stability of foreign currency funding is a priority for Sumitomo Mitsui Banking Corporation and covered bonds provide a new level of balance in this regard, according to the bank’s head of treasury. Since other borrowers in Japan are sure to be thinking along the same lines, the market for Japan's covered bond is likely to have tremendous scope for growth.

    • 01 Nov 2018

Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 12,659.07 70 5.33%
2 UniCredit 12,296.44 84 5.18%
3 Natixis 10,968.65 61 4.62%
4 LBBW 10,943.55 71 4.61%
5 UBS 10,837.07 59 4.56%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 79,113.16 343 6.05%
2 Citi 77,255.84 403 5.91%
3 Bank of America Merrill Lynch 76,833.52 308 5.87%
4 Goldman Sachs 70,741.60 609 5.41%
5 Morgan Stanley 67,928.10 386 5.19%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 64,710.03 242 10.43%
2 Bank of America Merrill Lynch 64,638.73 260 10.42%
3 Citi 60,425.61 304 9.74%
4 Goldman Sachs 54,060.91 544 8.71%
5 Morgan Stanley 52,824.12 302 8.52%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Natixis 8,053.17 31 7.07%
2 UniCredit 6,381.22 26 5.60%
3 LBBW 6,252.10 27 5.49%
4 Deutsche Bank 6,252.08 21 5.49%
5 Credit Agricole CIB 6,198.22 24 5.44%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 HSBC 7,584.11 21 12.36%
2 BNP Paribas 5,156.76 22 8.40%
3 Barclays 4,776.16 18 7.78%
4 Credit Suisse 4,518.72 16 7.36%
5 UBS 3,877.49 18 6.32%