Finland

Danske Bank opened and closed books in quick succession on Wednesday for the inaugural deal off its cover pool C programme which mixes both commercial and residential mortgages.

German 10-year Bunds are correcting slightly higher this (Friday) morning, but a long term trend of rising yields that has been in place since August remains intact. As a result, real money accounts are increasingly hitting their target returns –a driving factor behind a hugely upsized increase of a tap for Caisse de Refinancement de l’Habitat.

Finland’s Sampo Housing Loan Bank took advantage of calmer market conditions yesterday (Thursday) to price its first benchmark covered bond in four years, and an official at the issuer told The Cover that strong investor feedback had given it the confidence to come to a market that may now be closed for new supply until 2011.

Finland’s Sampo Housing Loan Bank launched a Eu1bn five year benchmark on Thursday, its first covered bond since being acquired by Danske Bank in 2006 and the third Finnish euro issue to hit the market this month. Meanwhile Germany’s DVB Bank has sold its first publicly placed ship Pfandbrief and Dexia Municipal Agency is preparing to meet Australian investors.

Credit Suisse is today (Wednesday) making its debut as a standalone covered bond issuer and has attracted strong demand for a Eu1.25bn five year deal despite tight pricing and a challenging market backdrop. Germany’s DVB Bank is in the market with an inaugural ship Pfandbrief.

The covered bond market could still be open for deals from high quality issuers and solid jurisdictions, according to syndicate bankers, despite wider market conditions quickly deteriorating yesterday (Monday) over fears that political turmoil in Ireland could derail implementation of a European Union and International Monetary Fund bailout package.

The pace of benchmark covered bond supply could step up a gear this week, with Credit Suisse eyeing the middle of the week for the launch of its inaugural issue, a Dutch bank said to be close to coming to market and others deciding on next steps after having finished roadshows last week. But another issuer has put primary market plans on hold until next year.

Finland’s Aktia Real Estate Mortgage Bank today (Thursday) launched a Eu500m three year issue that slotted into a slipstream created by an inaugural Nordea Bank Finland deal sold on Tuesday, while a Bank für Arbeit und Wirtschaft PSK mandate became the latest addition to a growing deal pipeline.

Euro benchmark covered bond supply slowed to a lone tap from Bayerische Landesbank today (Wednesday), although the pipeline of roadshows grew with the addition of a mandate from the UK’s Clydesdale Bank. Nordea Bank Finland yesterday priced a Eu2bn five year inaugural deal that appears to be the biggest Finnish benchmark covered bond ever.

Nordea Bank Finland will today (Tuesday) price a Eu2bn five year inaugural benchmark covered bond after building one of the biggest order books for a euro issue this year, while Austria’s Hypo NOE Gruppe Bank met with sufficient demand to sell a Eu500m three year inaugural public sector Pfandbrief.

An April 2016 Caisse de Refinancement de l’Habitat issue was the only new benchmark covered bond live in the market this (Monday) morning, but with three other issuers lining up deals and two more borrowers announcing mandates the pipeline of forthcoming new issues and roadshows is well stocked.

Leeds Building Society is lining up to re-open the sterling covered bond market next week, while other inaugural deals are expected to lead a resumption of new benchmark issuance in euros.