Finland

SNS Bank has mandated lead managers for a new covered bond that is expected this week, and several other issuers are said to be candidates for issuance in the coming days.

Benchmark supply is expected to be thin on the ground this week, even though some institutions have concluded preparations for covered bond issuance. But while blackouts and an unpredictable sovereign market might stymie euro supply, bankers have not ruled out shorter dated issuance from core jurisdictions.

GCE Covered Bonds has closed the order books for a three year benchmark that will be priced at the tight end of revised guidance later today (Tuesday). Swedish Covered Bond Corporation could be the next issuer to follow, having announced a mandate for a five year deal.

Aareal Bank was first into the covered bond market this (Monday) morning, opening books on a Eu500m five year mortgage Pfandbrief. Meanwhile, Groupe Caisse d’Epargne is building a shadow order book for its first benchmark since September 2008 and a handful of other issuers have announced mandates.

OP Mortgage Bank built the biggest order book of this week’s deals for a Eu1.25bn five year benchmark that was priced at 40bp over mid-swaps yesterday (Thursday). The issuer told The Cover that it usually comes to the market in the spring, but that this year it paid off to postpone its transaction.

EBS Mortgage Finance is taking orders for a Eu1bn three year mortgage-backed benchmark at the 175bp over mid-swaps area today (Thursday), while OP Mortgage Bank was this morning twice oversubscribed on a Eu1.25bn five year.

EBS Mortgage Finance and OP Mortgage Bank are sounding out investors today (Wednesday) for what are said to be three and five year deals, respectively. Fortis Bank Nederland’s planned debut is also being discussed.

Moody’s yesterday (Tuesday) downgraded several Scandinavian financial institutions that either issue covered bonds or are closely linked to issuers, concluding reviews for possible downgrade that were initiated on 22 July.

Fitch yesterday (Wednesday) changed Pohjola Bank’s outlook from stable to negative, while affirming the bank’s issuer default, individual and support ratings and support rating floor.

Aktia Real Estate Mortgage Bank successfully priced a Eu600m, Aa1 covered bond this (Wednesday) morning, which bankers said highlighted the flexibility on offer in the market.

Aktia Real Estate Mortgage Bank is today (Tuesday) sounding out investors for a five year non-jumbo.

Deutsche Bank has closed books on its debut Pfandbrief issue and will price the seven year issue at 55bp over mid-swaps, the tight end of guidance, while BNP Paribas also looks set to hit a relatively tight level on its first public sector obligations foncières.