Covered Bonds All Articles

  • Covered bonds to lead FIG tighter

    Although the European Central Bank (ECB) hasn’t said yet how it intends to split buying across the €20bn of net asset purchases that it plans on making each month, it is likely covered bonds will form an integral part. And if covered bonds tighten, that probably means much else will be dragged along for the ride.

    • 19 Sep 2019
  • ECB breathes life into FIG as investors prepare for infinite QE

    Investors bid a warm welcome to a heap of new bonds from financial institutions this week, spurred on by the knowledge that the European Central Bank would soon be back as one of the biggest buyers in the market. Bill Thornhill and Tyler Davies report.

    • 19 Sep 2019
  • Pfandbrief duo enjoy solid investor response

    German Pfandbrief issuers DZ Hyp and Landesbank Hessen-Thüringen Girozentrale (Helaba) enjoyed strong receptions for their €1bn Pfandbriefe issued this week. Bankers suggested that the German market had a good chance to perform.

    • 19 Sep 2019
  • UK trio pounce on euro covered bonds

    Lloyds Bank, Virgin Money and Skipton Building Society took advantage of an improvement in market conditions since the European Central Bank’s policy meeting, and the UK Parliament’s efforts to legislate against leaving Europe without a deal, to issue a string of successful covered bonds this week.

    • 19 Sep 2019
  • Investors swoop on Helaba as spreads set to tighten

    The order book for Landesbank Hessen-Thueringen Girozentrale’s (Helaba) €1bn 10 year public sector backed Pfandbrief was quick to build reflecting the view that the bonds were priced cheaply and that spreads will almost certainly tighten, said bankers.

    • 19 Sep 2019
  • Healthy dollar demand propels covered bonds from RBC and FCDQ

    Two Canadian issuers revitalised the dollar covered bond market this week as Royal Bank of Canada raised €1.5bn of three year funding on Tuesday at half the cost of its senior funding and at a substantially lower cost than a year ago. The transaction was followed by Fédération des caisses Desjardins du Québec (FCDQ) which opened order books for another three year on Thursday.

    • 19 Sep 2019
  • Liberbank debut covered bond draws double the demand of Skipton

    Liberbank’s inaugural covered bond issued on Wednesday showed that investors are still hungry for paper that offers a positive yield and good relative value. The Spanish deal drew more than twice as much demand as Skipton Building Society’s competing negative yielding transaction, which was the third UK covered bond issued this week.

    • 18 Sep 2019
  • Issuers ‘hot trot’ in covered bonds as bankers see execution certainty

    Demand for euro covered bonds issued on Tuesday by Virgin Money, NN Bank and DZ Hyp has markedly improved from earlier this month, and lead managers have announced a further series of transactions from Royal Bank of Canada, SR Boligkreditt, Skipton Building Society and Liberbank.

    • 17 Sep 2019
  • Covered bond awards 2019: voting patterns

    A breakdown of how investors, issuers and lead managers voted in the covered bond awards survey 2019.

    • 16 Sep 2019
  • Lloyds ‘delivers last missing piece’ for Virgin’s debut covered bond

    Lloyds Bank attracted a large and diverse order book for its €750m 10 year covered bond on Monday and has provided ‘the last missing piece’ for bankers working on Virgin Money’s debut euro covered bond, which is expected to be announced soon.

    • 16 Sep 2019
  • GlobalCapital Covered Bond Awards 2019: the winners

    Congratulations to the winners of GlobalCapital's Covered Bond Awards 2019.

    • 13 Sep 2019
  • Capital markets divided as ECB wheels out big guns once more

    There was a mixed bag of views across the capital markets after the European Central Bank unleashed a new comprehensive stimulus package on Thursday, comprising restarting net bond buying, a rate cut and a tiered deposit rate system for banks.

    • 12 Sep 2019
  • Deutsche promotes Lewellen to run IG DCM, Buvat to run levfin

    Deutsche Bank has announced a round of senior appointments in its primary debt businesses, naming Hoby Buvat head of EMEA leveraged finance origination and Mark Lewellen head of EMEA debt capital markets origination.

    • 11 Sep 2019
  • 'Brussels smells green, you can see it and feel it,' says ECBC's Bertalot

    The prospective growth of green and sustainable covered bond funding, and the Covered Bond Directive, were key topics at the well attended European Covered Bond Council’s 30th plenary session, held in Munich on Wednesday, especially with respect to the Pfandbrief market, which celebrates its 250th anniversary this year.

    • 11 Sep 2019
  • Credit risk models don’t work with climate change, says EBA supervisor

    As climate change takes hold, banks could incur losses in a very different way from what is typically captured by using credit risk modelling, delegates heard at the European Covered Bond Council’s 30th plenary meeting, held in Munich on Wednesday.

    • 11 Sep 2019
  • Bazooka or water pistol, Draghi is guaranteed to disappoint

    There is typically a degree of consensus among market participants as to what a central bank will say at its upcoming monetary policy meeting. But, days before the European Central Bank’s Governing Council gathering on Thursday — the most important of the year and perhaps ever — there are wide ranging views as to what its president Mario Draghi will announce at his swansong meeting. Someone will get burned.

    • 10 Sep 2019
  • CRH hits the road after six year hiatus

    Caisse de Refinancement de l’Habitat, the specialist French covered bond issuer, has overcome regulatory hurdles and will issue covered bonds following a roadshow.

    • 10 Sep 2019
  • A first for Prima: new Slovakian issuer set for debut covered bond

    Prima banka Slovensko is set to become the third Slovakian issuer of euro covered bonds after it mandated lead managers on Monday for a roadshow.

    • 09 Sep 2019
  • LBBW pays modest Pfandbrief premium

    LBBW issued a well subscribed €650m nine year public sector loan-backed Pfandbrief on Monday at a relatively tight new issue concession compared with many recent negative yielding covered bonds.

    • 09 Sep 2019
  • Investor work pays dividends for My Money Bank

    Specialist French lender My Money Bank SCF (MMB) returned to the covered bond market on Monday to issue its second deal, which attracted a more diverse and larger order book than its first. A positive yield helped, but so did the issuer’s investor relations effort, according to a lead manager.

    • 09 Sep 2019
  • HSBC Canada ‘resonates’ with investors

    HSBC Canada this week issued a larger covered bond and with a higher subscription ratio than it managed on its inaugural deal, reflecting that its marketing efforts had “really resonated with investors”, according to the bank’s head of balance sheet management, Marty Halpin.

    • 05 Sep 2019
  • DekaBank lacks ‘momentum’ amid rates sell-off

    DekaBank managed to raise 10 year Pfrandbrief funding on Thursday, but with rates volatility spiking higher, the deal lacked lustre, similar to many covered bonds issued lately.

    • 05 Sep 2019
  • Erste flies high as Cred Ag gives spread

    Erste Group and Crédit Agricole competed for covered bond investors’ attention at the long end of the curve on Wednesday with a rise in yields helping boost demand, particularly for the Austrian deal which started with a generous spread. At the same time Deutsche Hypo issued a three year.

    • 04 Sep 2019
  • FIG investors show ‘apathy’ for secondaries

    Financial institution investors, desperate for any sort of yield pick-up are keeping their cash away from secondaries in the hope of earning new issue concessions in a rejuvenated primary market.

    • 04 Sep 2019
  • Covered trio to hit market with more negative yields

    Deutsche Hypo, Erste Group and Credit Agricole SCF have mandated leads for covered bonds that are all expected to carry negative yields.

    • 03 Sep 2019
  • Price transparency lifts demand for HVB’s Pfandbrief

    A transparent pricing approach was integral to the success on Tuesday of UniCredit AG’s (HVB) five year Pfandbrief, which was launched with a deeply negative yield.

    • 03 Sep 2019
  • BMO switches Cook for Wortzman

    BMO Capital Markets’ SSA banker Lindsay Wortzman is transferring to Toronto, and to replace her the London team have picked up Samantha Cook from Nomura.

    • 03 Sep 2019
  • CFF enters ‘new paradigm’ with eight year

    Compagnie de Financement Foncier (CFF) unearthed strong demand for the first negative yielding non-German covered bond of the year, and the first with a long tenor.

    • 02 Sep 2019