France

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.

Banco Santander opened books on a five year cédulas hipotecarias with guidance of the 50bp over mid-swaps area this (Tuesday) morning, surprising market participants because a 10 year issue had initially been expected. Meanwhile, Dexia Municipal Agency is said to be preparing a 12 year benchmark.

Standard & Poor’s yesterday (Monday) affirmed a further five covered programmes at AAA under its new covered bond rating methodology, taking the number of programmes that have kept their top rating to 11.

In contrast to most of this week’s supply, the inaugural HSBC Covered Bonds (France) transaction was yesterday (Wednesday) priced at the tight end of where it had been whispered, despite being the seventh seven year of 2010 and being launched into a weak market.

Compagnie de Financement Foncier negotiated a tricky turn in the market to launch the largest three year covered bond since May 2008 yesterday (Tuesday). The issuer told The Cover that the deal’s size reflected the strong demand it encountered, especially from Asian and central bank buyers.

The benchmark covered bond market is today (Wednesday) set to break through the previous record for issuance in a week, with HSBC Covered Bonds and UBS having launched seven and three year deals, respectively, and Abbey understood to be whispering a five year issue.