Covered Bonds - All Articles

  • Covered bond squeeze feared as ECB ramps up buying amid slower supply

    After a brisk start to the year, the pace of covered bond supply had already begun to slow by Thursday amid growing concern that the European Central Bank would be compelled to step up purchases, igniting fears of a technical squeeze. Bill Thornhill reports.

    • 16 Jan 2020
  • Covered bond issuers price flat to fair value

    A lack of supply relative to 2019 and much more aggressive central bank buying ensured that Banco Sabadell, Royal Bank of Canada and OP Mortgage Bank were able to price covered bonds flat to fair value this week.

    • 16 Jan 2020
  • French threesome covers up

    BPCE, Credit Mutuel Home loan (CM-CIC) and Axa Bank issued French covered bonds this week with Axa issuing its first transaction under a new and lower rated Belgian ownership structure.

    • 16 Jan 2020
  • Trio of Austrians find Pfandbrief favour

    Austrian covered bond borrowers Bawag PSK, UniCredit Bank Austria and RLB Oberösterreich found a warm reception for their €500m no-grow deals this week.

    • 16 Jan 2020
  • Pfandbriefe trio price flat to their curves

    Helaba, Deutsche Bank and Deutsche Pfandbriefbank (PBB) had little trouble accessing the Pfandbrief market this week with a series of deals that were priced flat to their curves.

    • 16 Jan 2020
  • Luminor Bank steps closer to covered bond issuance with Moody’s rating

    An Estonian covered bond could soon be due in the market after Moody’s rated Luminor Bank’s programme this week — the first to be structured under the country’s newly established law. The rating comes after the European Central Bank granted Luminor a license to issue covered bonds in December.

    • 16 Jan 2020
  • NordLB Lux mandates for first renewable energy deal, again

    NordLB Luxembourg was expected to arrive in the market with its inaugural renewable energy covered bond late last year, having completed a market programme and mandated lead managers. On Thursday it finally plucked up the courage to re-announce the long-awaited deal — the first to be ever issued under the country’s new law.

    • 16 Jan 2020
  • Crédit Mutuel grabs €1.25bn as covered bond supply fears mount

    Credit Mutuel Home Loan SFH (CM-CIC) completed a busy week in the euro covered bond market with a €1.25bn 10 year offering on Thursday. The deal emerged amid growing concern that euro covered bond supply will fall, as borrowers like SCBC, Danske Bank and Nordea turn to local currency markets, while others see better alternative funding opportunities, or simply bide their time.

    • 16 Jan 2020
  • Investors swoop on Helaba and Bawag covered bonds as drought feared

    Landesbank Hessen-Thueringen Girozentrale (Helaba) and Bawag enjoyed heavy demand for their covered bonds, issued on Wednesday, amid growing concern that January’s usual supply surge is about to come to an abrupt end.

    • 15 Jan 2020
  • Covered bond investors putting on the risk

    Covered bond investors are increasingly confident about taking on duration and credit risk as yields are set to be stable and spreads should remain well supported, an asset manager told GlobalCapital on Wednesday.

    • 15 Jan 2020
  • Bawag and Helaba mandated amid expected supply slowdown

    Covered bond issuers Bawak PSK and Helaba have mandated leads for deals that are likely to be launched on Wednesday — signalling a slackening in Tuesday’s much faster pace.

    • 14 Jan 2020
  • Covered bond demand takes off as supply rises

    BPCE took the lion’s share demand for the six covered bonds issued on Tuesday with its stand out two-part offering that was priced flat to the curve — along with other deals from OP Mortgage Bank, Deutsche Pfandbriefbank, UniCredit Bank Austria and Axa Bank Belgium, which issued its first transaction under a new and new and lower rated ownership structure.

    • 14 Jan 2020
  • Eurozone covered bond issuers to feed ECB

    Four covered bond issuers from Germany, Austria, France and Belgium have announced deals that are expected to be launched on Tuesday and will be heavily bought by the European Central Bank.

    • 13 Jan 2020
  • Scarce supply helps covered bond issuers price deals flat to fair value

    A lack of supply relative to 2019 and much more aggressive central bank buying ensured that Banco Sabadell, Royal Bank of Canada, Deutsche Bank and RLB Oberösterreich were able to price their respective covered bonds flat to fair value on Monday.

    • 13 Jan 2020
  • RLB OÖ mandates for 15 year ahead of ‘crowded’ expectations

    Raiffeisenlandesbank Oberösterreich has signalled that it will issue a new 15 year covered bond in the euro market next week, with the Austrian bank keen to book its spot in an extremely crowded market.

    • 10 Jan 2020
  • Issuers flock to long ends in covered bonds

    Issuers this week have steered clear of negative yielding covered bonds, choosing longer maturities for their securities. Crédit Agricole Italia went as far as 25 years, while on the other end was Santander UK marketing a seven year tenor.

    • 09 Jan 2020
  • Banks flock to sterling in 'delayed reaction' to Brexit election

    Foreign and domestic banks flocked to the UK this week as they sought to take advantage of stellar funding conditions in the sterling market. Bankers said this was the first chance issuers had to benefit from opportunities in the currency following December’s general election, which removed a lot of short-term uncertainty around Brexit.

    • 09 Jan 2020
  • SSAs and FIG seize sizzling sterling amid Brexit bounce

    The sterling bond market, usually buoyant enough at the start of a year, got a Brexit boost this week, allowing public sector borrowers and financial institutions to take full advantage. Investors piled into deals following greater clarity on the UK’s looming exit from the EU but before possible volatility around the January 31 departure date. Burhan Khadbai and David Freitas report.

    • 09 Jan 2020
  • Crédit Agricole Italia's dual tranche offers more juice with longer tenor

    Crédit Agricole Italia marketed a dual-tranche bond with eight year and 25 year maturities. A steeper curve helped the longer tranche offer a higher pickup against the shorter bond, but investors still placed hefty orders on both tenors.

    • 09 Jan 2020
  • Issuers flock to long end in euro covereds

    Danske Mortgage Bank, Santander UK, Raiffeisenlandesbank Hypothekenpfandbrief and UniCredit Bank AG were marketing covered bonds on Wednesday, steering well clear of negative yields by tapping into healthy demand for long dated assets.

    • 08 Jan 2020
  • Issuers turn to Sonia for sterling covered

    The Sonia-linked covered bond market is showing signs that it is 'maturing', with Commonwealth Bank of Australia launching a new deal in the format on Tuesday and Coventry Building Society looking to follow in the footsteps of two of its compatriots early in 2020.

    • 07 Jan 2020
  • Covered bond issuers flood back into euros with 'cautious' NIPs

    Issuers rushed to open the euro covered bond market this week. Trades from ABN Amro, Erste Group and LBBW showed that investors are ready to put cash to work, but higher new issue premiums suggested that issuers were taking a 'conservative' approach at the beginning of the year.

    • 07 Jan 2020
  • Leeds benefits from ‘unparallelled’ demand for sterling covered bond

    Leeds Building Society opened books on Monday for its second Sonia-linked covered bond. The trade benefited from an ‘unparallelled’ level of demand, reaching almost four times its £600m size.

    • 06 Jan 2020
  • LBBW set to be first of FIG in 2020

    LBBW has picked banks to arrange the sale of a new euro covered bond as activity in the market gets off to a slower start than usual following the new year break.

    • 06 Jan 2020
  • Nationwide ‘extracts maximum value’ with tightest five year Sonia covered to date

    Nationwide Building Society issued the first sterling covered bond of the year on Friday, without needing to pay any premium over the tight trading levels of its existing bonds.

    • 03 Jan 2020
  • Euro FIG market set for ‘slower start than normal’

    Financial institutions could take longer than usual to return to the euro bond market at the start of 2020, with the early issuance window having been broken up by the holiday period.

    • 02 Jan 2020