France

Compagnie de Financement Foncier yesterday (Wednesday) priced a Eu1bn five year obligations foncières issue at 57bp over mid-swaps, in line with guidance of the high 50s over area, via leads Commerzbank, Deutsche Bank, HSBC and Natixis.

The iTraxx senior financials is trading wider ahead of the release of the EC’s latest draft consultation paper, which is likely to confirm suspicions that an EU wide initiative on bank bail-ins is going to be hard-coded into regulation.

GCE Covered Bonds has closed books on a Eu1.25b four year transaction, which leads Crédit Agricole, ING, Natixis and UniCredit priced at 60bp over mid-swaps, the middle of guidance.

Crédit Agricole yesterday (Wednesday) priced a Eu1.5bn 10-year covered bond at the tight end of initial guidance at mid swaps 73bp via leads Crédit Agricole, Deutsche Bank, ING, Natixis and Santander.

BNP Paribas home loan bank attracted over 100 accounts to participate in a Eu1.75bn 10 year issue yesterday (Tuesday), which leads BNP, Natixis, RBS and UniCredit priced at 65bp over mid swaps.

Primary issuance continues to power ahead with five deals pricing yesterday and a further five deals expected to price this afternoon. Several more have been announced but, in a possible sign of things to come, two have been postponed and there is speculation that another is struggling.

After a very quiet December, market participants are not surprised to see a strong start to the primary market in the New Year, with one deal already priced and as many as seven others on the way.

CIF Euromortgage sold a Eu250m increase of an outstanding Eu700m June 2020 issue today (Monday), which leads BNP Paribas, HSBC and Natixis will price at 65bp over mid swaps the middle of guidance according to a syndicate official involved in the transaction.

Caisse de Refinancement de l’Habitat yesterday (Thursday) priced a significantly upsized Eu500m increase of its Eu500m September 2022 issue at 67bp over mid swaps via sole lead HSBC.

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.

Benchmark covered bond supply in 2011 is likely to be close to 2010 volumes, according to covered bond analysts, with no analysis forecasting more than a Eu20bn rise or fall relative to 2010 levels.

France’s Caisse de Refinancement de l’Habitat yesterday (Thursday) sold a Eu300m increase of a Eu1.8bn 2020 transaction that was was driven by reverse enquiry and benefitted from a back-up in yields that syndicate officials said was conducive to long dated supply.