Covered Bonds - All Articles

  • Covered bond market drools over Swedish pair

    Covered bond investors could not get enough of Swedish seven year deals issued this week by Swedbank and Skandinaviska Enskilda Banken. But whether record order books are being inflated remains a moot point.

    • 31 Jan 2019
  • BayernLB and Aareal launch into strong covered mart

    Bayerische Landesbank (BayernLB) and Aareal Bank found strong demand for their Pfandbrief this week. Despite pricing tightly to mid-swaps the deals offered a generous pick-up to Bunds, which ensured broad based interest.

    • 31 Jan 2019
  • SEB succours on strong seven year demand

    Skandinaviska Enskilda Banken followed Swedbank with a seven year deal, printing a well oversubscribed €1.25bn covered bond on Thursday flat to its curve. The deal comes as Citi research suggested excess demand for covered bonds issued this month is at a record level.

    • 31 Jan 2019
  • BondMarker: Rabo the best issuer, BNP Paribas the best arranger

    Rabobank, Sparebank 1 Boligkreditt and Société Générale issued most highly rated deals this January and BNP Paribas has, on average, worked on the most highly rated deals so far this year according to GlobalCapital's BondMarker.

    • 30 Jan 2019
  • Soer issues most oversubscribed covered bond as periphery issuers circle

    The covered bond market looked well supported on Wednesday as Sparebank Soer Boligkreditt issued the most highly oversubscribed deal of the year, which was priced flat to its curve. With all new issues tightening bankers are hopeful that Italian and Greek supply could soon follow.

    • 30 Jan 2019
  • Sparebank Soer takes Norwegian covered bonds to four

    Sparebank Soer Boligkreditt has mandated leads for a covered bond and taken advantage of demand identified in the previous three Norwegian deals issued so far this year.

    • 29 Jan 2019
  • Five and seven year covereds “fly like hell”

    After a string of very successful 10 year covered bond trades, it was clear that seven and five year deals would “fly like hell,” said a syndicate manager on one of the deals issued on Tuesday by Swedbank and Aareal Bank.

    • 29 Jan 2019
  • BayernLB launches into strong but slowing covered mart

    BayernLB launched a 10 year Pfandbrief on Monday in line with where DZ Hyp’s recent 10 year was trading, setting the market up nicely for Aareal Bank, which has also announced issuance plans. Despite record supply last week, spreads are tighter across the board, possibly reflecting the view that volumes are set to slow as issuers head into blackout.

    • 28 Jan 2019
  • Eika rides covered bond bull run

    The covered bond market remained in fine fettle on Friday as Eika Boligkreditt found strong demand for the seventh 10 year of the week and Helaba issued a benchmark-sized tap of an old 10 year. At the same time BayernLB picked leads for another 10 year and Cafill mandated for its first social covered bond.

    • 25 Jan 2019
  • Records smashed across high grade bonds as investors flood in

    Investors are returning to the covered bond, sovereign and supranational agency (SSA) markets in their droves. Despite exceptionally heavy issuance, the startling breadth and depth of demand seen in many deals this week caught market participants off guard — not least the investors themselves. Bill Thornhill reports.

    • 24 Jan 2019
  • PKO, PBB and RLB NW add flavour in covered bonds

    PKO Bank Hipoteczny (PKO), Deutsche Pfandbriefbank (PBB) and Raiffeisenlandesbank NiederÖsterreich-Wien (RLB-NW) all found strong demand for their €500m covered bond deals this week.

    • 24 Jan 2019
  • RBC feeds covered bond investors’ frenzy

    Fearful of missing out and in the absence of competing credit supply, investors piled into higher yielding covered bonds offered by Canadian, Australian and Swedish issuers this week. A negative new issue premium Royal Bank of Canada’s five year epitomised the state of investor frenzy.

    • 24 Jan 2019
  • Société Générale sets ball rolling for French covereds

    Société Générale this week issued a highly oversubscribed €1bn eight year that paved the way for follow-on French covered bonds from Credit Mutuel CIC — which attracted a €5bn order book for its two part deal — and La Banque Postale.

    • 24 Jan 2019
  • ‘Vintage Rabo’ issues record breaking covered bond

    Rabobank has issued the largest covered bond of the year, drawing the biggest and most granular order book for any covered bond in over five years in the process. The stellar reception illustrated the issuer’s broad reach and confirmed that the full gamut of covered bond buyers are now back.

    • 24 Jan 2019
  • Returning bank treasury investors buoy covered bonds

    Sentiment has changed in the covered bond market. After almost a year of spread widening, a new pricing equilibrium has been reached.

    • 23 Jan 2019
  • Covered bond quartet pay tiny NIPs

    Four covered bond issuers returned to the market on Wednesday and, in contrast to the start of the year when concessions were 5bp-7bp, none paid more than 2bp.

    • 23 Jan 2019
  • SCBC issues inaugural green covered bond

    SCBC chose to issue its first green covered bond in its home currency this week, saving itself a few basis points compared with euros — where a green covered bond is now considered 'feasible'.

    • 23 Jan 2019
  • Monte shows OBG success despite sub debt struggle

    Banca Monte Dei Paschi di Siena (MPS) achieved a strong result for its first Obbligazioni Bancarie Garantite (OBG) since 2015, sending a strong signal to investors, and particularly those of its struggling subordinated bonds.

    • 23 Jan 2019
  • Feeding frenzy fires up covered bonds

    Fearful of missing out and, in the absence of competing credit supply, investors piled into six covered bonds on Tuesday with a combined value of more than €6bn.Royal Bank of Canada’s deal epitomised the state of investor frenzy as it was able to issue the largest deal of the year with a negative new issue premium.

    • 22 Jan 2019
  • Monte, Spabol,DZ and FCDQ signal supply intentions as others line up

    Banca Monte Dei Paschi di Siena (MPS), Fédération des caisses Desjardins du Québec (FCDQ), SpareBank 1 Boligkreditt (Spabol) and DZ Bank have announced plans to issue covered bond benchmarks on Wednesday when the market is expected to be just as busy as it was on Tuesday.

    • 22 Jan 2019
  • Credit Mutuel plans covered bond

    Credit Mutual-CIC Home Loan SFH has been quick to seize the opportunity identified following Société Générale's blow-out covered bond reception on Monday and has mandated leads for a follow-on dual tranche deal.

    • 21 Jan 2019
  • Covered bonds lift off as demand soars

    A €5bn wall of demand chased a trio covered bonds issued on Monday by Société Générale, PKO Bank Hipoteczny and Deutsche Pfandbriefbank and showed that, after a shaky start to 2019, the market has now found form.

    • 21 Jan 2019
  • Kogta issues India's first dual recourse bond

    Non-bank lender Kogta Financial and Northern Arc Capital have sold the first Indian dual recourse bond secured on auto loan receivables.

    • 18 Jan 2019
  • Covered bond issuers turn to PP market

    Although the public covered bond market was quiet over the second half of this week, several issuers have been busy working on private placements in the year so far. These deals have been driven by reverse enquiry from insurance firms looking for safe, ultra-long dated investments that meet return targets.

    • 17 Jan 2019
  • LBBW issues tightest covered bond so far

    LBBW this week issued a long three year public sector Pfandbrief at the tightest spread of the year, showing just how receptive investors are to supply, particularly for strong names in short tenors.

    • 16 Jan 2019
  • OBG supply can provide political cover for TLTRO III

    Never mind the fact that Italian banks are unable to fund themselves economically. If a few can demonstrate access to the Obbligazioni Bancarie Garantite market, the European Central Bank’s impending third targeted long term refinancing operation (TLTRO) might look less like a bailout.

    • 15 Jan 2019
  • Deutsche Bank gets ‘textbook’ Pfandbrief execution

    Deutsche Bank returned to the covered bond market to issue a perfectly choreographed Pfandbrief. The deal was launched into a relatively quiet market and quickly attracted strong demand, enabling leads to set terms very early in the day despite underlying market concerns.

    • 15 Jan 2019
  • How the covered bond marker works

    Half of the Covered Bond Mark is derived from a survey of market participants. The other half is calculated using a range of key metrics — such as the deal’s subscription ratio, its performance, the granularity of the order book, and the transaction’s size.

    • 15 Jan 2019
  • Covered bond bids improve as Brexit storm clouds gather

    Bids for recently issued covered bond deals are trading close to or tighter than their reoffer spreads but with the UK parliament’s crunch vote on the European withdrawal agreement due on Wednesday, scope for a further widening cannot be ruled out. Especially if new issue premiums continue to reprice curves.

    • 14 Jan 2019
  • ANZ becomes first overseas bank to issue Sonia-linked covered bond

    ANZ became the first non-UK bank to issue a Sonia-linked covered bond on Friday. The competitive and sizeable funding could well spur follow-on issuance from another non-UK bank early next week.

    • 11 Jan 2019
  • Credit Ag and Caffil catch long end in covereds

    Crédit Agricole reached considerable size expectations and raised €1.5bn of 10 year covered bond funding on Monday. A day later Caffil raised a not insignificant €1.25bn with a well subscribed two part six and 15 year offering.

    • 10 Jan 2019
  • Canadian and Nordic covereds hit the spot

    Investors flocked to Nordic and Canadian covered bonds issued this week by DNB Boligkreditt, Bank of Nova Scotia (BNS) and National Bank of Canada, perhaps reflecting a view that their spreads are well positioned to withstand the European Central Bank’s withdrawal from covered bond market.

    • 10 Jan 2019
  • Helaba takes Pfandbrief pride of place

    A decision by Landesbank Hessen-Thueringen Girozentrale (Helaba) to issue a rare three year covered bond as part of a two part offering, paid off and put its covered bond offering head and shoulder above other deals issued this week by BayernLB, HVB and UniCredit Bank Austria.

    • 10 Jan 2019
  • Westpac hits dollars and euros covered bonds

    Westpac issued the first dollar covered bond of the year this week, while its New Zealand subsidiary hit the euro market following the demand unearthed by an earlier deal from ANZ New Zealand.

    • 10 Jan 2019
  • Credito Emiliano opens peripheral covereds

    Credito Emiliano this week issued the first Obbligazioni Bancarie Garantite of the year, sending a strong signal to issuers struggling to fund in the senior market. The Italian bank followed Deutsche Bank SA which issued the first Spanish deal of 2019.

    • 10 Jan 2019
  • Credito Emiliano gives OBGs a strong start

    Credito Emiliano has successfully issued the first Obbligazioni Bancarie Garantite of the year. Some bankers believe the bond issue sends a strong signal to issuers struggling to fund in the senior market and should therefore catalyse supply, but other have their doubts.

    • 10 Jan 2019
  • Westpac NZ flies in peer's slipstream

    Westpac New Zealand drew strong support for its five year covered bond on Thursday which took advantage of the strong demand and performance identified in ANZ New Zealand’s earlier deal.

    • 10 Jan 2019
  • ECB mulled TLTRO return at December meeting

    Minutes from the European Central Bank’s latest monetary policy meeting reveal that Governing Council members suggested revisiting a scheme allowing banks to access cheap liquidity.

    • 10 Jan 2019
  • Helaba achieves strong Pfandbrief result with rare two part deal

    Landesbank Hessen-Thueringen Girozentrale (Helaba)’s decision to issue a rare three year covered bond as part of a two part offering, clearly paid off despite concerns over the lack of yield.

    • 09 Jan 2019
  • Deutsche Bank SA and UniCredit AG covered bonds scrape over the line

    Small benchmark covered bond deals issued on Wednesday by Deutsche Bank’s Spanish subsidiary and UniCredit’s Austrian subsidiary were slow to build and priced in line with initial guidance. This led some to question whether this was due to a degree of unease with their parent groups or whether investors baulked at the pricing process.

    • 09 Jan 2019
  • Caffil, ANZ NZ and NBC find succour in covereds

    Euro covered bonds issued by ANZ New Zealand, Caffil and National Bank of Canada on Tuesday provided “the least worst option” in a spread widening environment, said bankers.

    • 08 Jan 2019
  • Risk-free rates: Sonia and Sofr at the forefront of new era

    The bond market is well ahead of schedule in its adoption of potential Libor replacements, with several issuers having printed notes linked to the Secured Overnight Financing Rate (Sofr) in the dollar market, and to the Sterling Overnight Index Average (Sonia) in sterling. Borrowers are setting strong standards for other participants to take up, as well as adjusting structures to ensure the eventual market is optimal. That does not mean the job is finished, of course. GlobalCapital spoke to some of the pioneers in the Sonia and Sofr markets about their work so far — and the challenges ahead.

    • 08 Jan 2019
  • Westpac reopens dollar covered bonds

    Westpac has issued the first dollar covered bond of the year, and its first in that currency in more than two years. The borrower took advantage of a quiet market to issue a sizeable $2bn five year deal that provided a considerable cost saving to senior unsecured — sending a strong signal to other issuers.

    • 08 Jan 2019
  • Caffil mandates for two part covered bond

    Caffil has mandated joint leads for a two part covered bond which, at the long end, is expected to offer a juicy spread.

    • 07 Jan 2019
  • Lloyds issues second Sonia covered bond

    Lloyds Bank issued a £750m three year Sonia linked covered bond on Monday, taking advantage of the steepness of the sterling curve to cut the funding cost. But having issued almost £4bn ($5.1bn) in the last 12 months, demand was much less compelling than Nationwide’s recent Sonia debut.

    • 07 Jan 2019
  • DNB ticks all the covered bond boxes

    DNB Boligkreditt attracted a comfortably oversubscribed order book for its €1.5bn seven year covered bond on Monday, illustrating the market’s sweet-spots for tenor, name and jurisdiction.

    • 07 Jan 2019
  • Credit Ag’s 10 year lands as rivals debate deal's timing

    Crédit Agricole managed to reach considerable size expectations and raise €1.5bn of covered bond funding in the challenging 10 year tenor on Monday. Although a tighter price might have been possible on Friday, the issuer’s size ambitions would probably have been thwarted.

    • 07 Jan 2019
  • Bid in the belly supports covered bonds from BNS and BayernLB

    Bank of Nova Scotia and BayernLB found good demand for their covered bonds issued in the belly of the curve on Friday, but UniCredit AG (HVB) experienced a more challenging sales process for its 10 year Pfandbrief. Crédit Agricole will be hoping for a better reception when it issues a 10 year next week.

    • 04 Jan 2019
  • Sterling boom ahead of Brexit gloom

    Issuers are flocking to the sterling bond market ahead of the crunch vote in the UK Parliament on prime minister Theresa May’s Brexit deal, which is scheduled for January 14. Issuers are taking full advantage of a parliamentary recess and a break in the political mayhem that saw the vote, originally due to take place last month, postponed due to May's fears it would be voted down. Burhan Khadbai and Tyler Davies report.

    • 03 Jan 2019
  • BayernLB, UniCredit and Crédit Agricole to jump into covered bonds

    The covered bond market is likely to remain equally busy on Friday as it was on Thursday with a further three deals mandated. Bankers say next week could become even more frenetic.

    • 03 Jan 2019
  • Nationwide reopens sterling covered bond market

    Nationwide raised £1bn of five year covered bond funding on Thursday with its first Sonia-linked trade. It was perfectly timed to take advantage of the UK parliament’s recess and the brief period of political calm that this offered.

    • 03 Jan 2019
  • ABN and LBBW issue ‘workmanlike’ covered bonds as BMO gets ‘swashbuckling’ result

    ABN Amro and LBBW issued perfectly respectable, though uninspiring, euro covered bond trades on Thursday, deals that stood in contrast to a heroic deal from Bank of Montreal (BMO).

    • 03 Jan 2019
  • LBBW takes time to follow Commerz in covered bonds

    LBBW decided against competing for investors' attention with Commerzbank on Wednesday and has opted to give investors time before opening order books for its first covered bond of the year on Thursday.

    • 02 Jan 2019
  • Commerzbank kicks off 2019 with covered reopener

    Commerzbank reopened the covered bond market with the first covered bond of the year and the first in more than a month. The generously priced two part transaction was slow to start, but in the context of a weak and volatile market backdrop, the size was impressive.

    • 02 Jan 2019