France

BNP Paribas yesterday (Thursday) priced a Eu1.25bn four year covered bond, the third to be launched off the issuer’s Home Loan programme this year, inside guidance. The completion of the deal ushers in a summer break from the covered bond market for the issuer.

BNP Paribas will today (Thursday) price a four year covered bond, its fourth of the year, at the ambitious level it was said to have been targeting. Meanwhile, Berlin Hyp nipped into the market.

French covered bonds issued outside the country's obligations foncières legislation could be brought under a new, dedicated legal framework if a high level initiative comes to fruition.

Several covered bond issuers are understood to be circling the market, hoping to pick off tighter levels. However, some are encountering resistance from investors, even if the European Central Bank’s purchase programme continues to underpin the market.

Caixa Geral de Depósitos yesterday (Thursday) priced its debut obrigações sobre o sector público, a Eu1bn five year benchmark that achieved strong pricing inside levels initially communicated to investors. Meanwhile Crédit Agricole sized a five year issue at Eu1.25bn yesterday afternoon.

Crédit Agricole put an end to weeks of speculation that it was preparing a new issue when it launched a five year covered bond this (Thursday) morning, and appears to have been rewarded for its patience with a tight level.

GE SCF won acceptance from European covered bond investors for its debut obligations foncières issue yesterday (Tuesday), pricing a Eu1bn five year deal at 105bp over mid-swaps.

In brief: The books were opened for GE SCF’s first obligations foncières issue this (Tuesday) morning and the leads have reported that the maximum Eu1bn deal size has been exceeded, although the pace of sales appears slower than on recent jumbos.

Deutsche Postbank is this (Friday) morning understood to have built a book for its debut jumbo public sector Pfandbrief that is believed to be by far the largest for a covered bond in more than a year and one of the biggest ever.

The US lineage of GE SCF and the quality of its cover pool are likely to be key to the success of its debut obligations foncières transaction, said several market participants as the issuer embarked on a roadshow and the rating agencies released pre-sale reports.

Société Générale on Friday sold its second jumbo of the year, a Eu1bn maximum seven year issue that was four times oversubscribed, enabling pricing inside the level at which the deal was originally marketed.

Société Générale SCF leveraged off attractive pricing and a Eu1bn maximum size to build a Eu4bn book for a seven year jumbo and fix pricing inside guidance this (Friday) morning. But the execution disappointed some investors, who likened it to practices in the corporate bond market.