France

Société Générale SCF has closed the order books on a 12 year public sector benchmark that will be priced later today (Wednesday), becoming the first issuer to sell a deal this week as blackout periods and challenging market conditions have kept others at bay.

Canadian Imperial Bank of Commerce priced the first US-targeted benchmark covered bond in two-and-a-half years on Wednesday, a $2bn (Eu1.42bn/C$2.12bn) three year transaction that attracted more than $4bn of orders, and the deal is said to have generated enquiries from European issuers as to what is now feasible in the US.

Standard & Poor’s downgraded the first covered bond programme under its revised rating methodology yesterday (Thursday), cutting NIBC’s covered bonds from AAA to AA. The rating was withdrawn at NIBC’s request. Meanwhile S&P affirmed GCE Covered Bonds’ and Société Générale SCF’s programmes at AAA.

GCE Covered Bonds, which yesterday (Tuesday) priced its second benchmark covered bond, will continue as an issuer until the BPCE group it is a part of has set up a société de financement de l’habitat (SFH) to operate under new French legislation, an official at GCE told The Cover.

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.

Crédit Agricole yesterday (Thursday) priced a Eu2bn three year issue after building the biggest order book for a covered bond benchmark launched so far this year despite challenging market conditions.

Standard & Poor’s has affirmed GE SCF’s covered bond programme at AAA under its new covered bond rating methodology, which leaves 82 programmes on CreditWatch negative. It also assigned a AAA rating and a stable outlook to the first issue launched by HSBC Covered Bonds (France).

Moody’s yesterday (Wednesday) downgraded BNP Paribas’s senior debt rating from Aa1 to Aa2, on stable outlook, to capture tail risks from the bank’s investment banking operations and continuing pressure on asset quality from loan books.

Dexia Municipal Agency took advantage of a back-up in yields to yesterday (Wednesday) price a Eu1bn 12 year covered bond.

Crédit Agricole has closed the order books for a three year benchmark covered bond that will be priced at the tight end of guidance on the back of Eu3bn of orders.

Dexia Municipal Agency has launched a 12 year obligations foncières issue, the longest dated benchmark covered bond of the year, with the order books clearing the Eu1bn mark earlier this (Wednesday) morning. Meanwhile, Lloyds TSB has completed a non-deal roadshow for its covered bond programme.