France

Demand for Banques Populaires’ new benchmark yesterday (Tuesday) enabled the deal to be priced at the tight end of guidance, yet left room for the bond to perform today (Wednesday).

Banques Populaires this (Tuesday) morning opened books on a five year benchmark, taking the number of new jumbos to have been launched since the beginning of last week to nine, more than the eight of the first four months of the year.

Dexia Municipal Agency yesterday (Monday) priced a Eu1.5bn 12 year obligations foncières issue at the tight end of guidance, marking a successful return to the benchmark covered bond market after the group’s rescue last September.

Dexia Municipal Agency has opened books on a 12 year obligations foncières issue, its first jumbo covered bond since it had to be rescued by the Belgian, French and Luxembourg governments in September.

BNP Paribas yesterday (Wednesday) afternoon priced the first jumbo covered bond of the year in the three year maturity, a part of the curve where government-guaranteed issuance has so far dominated the market.

Compagnie de Financement Foncier yesterday (Tuesday) achieved broad support for its first jumbo since February 2008, a Eu1.25bn 12 year issue that was the longest dated covered bond benchmark since June 2008. The issuer told The Cover that it was keen to take advantage of the window created by the European Central Bank announcement on Thursday.

Despite considering a new issue, La Caixa looks unlikely to follow-up on Monday’s reopening of the Spanish market by Santander, but a French issuer is instead said to be due to launch a benchmark deal today (Wednesday).

Fitch yesterday (Tuesday) affirmed the AAA rating of Société Générale’s covered bond issuing arm, SG Société de Crédit Foncier, after downgrading SG SCF’s issuer rating.

BNP Paribas sold a Sfr275m (Eu183m) September 2014 covered bond yesterday (Monday) at a spread of 75bp over mid-swaps, the tight end of 75bp-80bp guidance. It was the first public mortgage-backed covered bond in the Swiss franc foreign market since September and the largest in over a year.

Compagnie de Financement Foncier has closed books on the longest dated covered bond since July 2007, a 12 year obligations foncières benchmark via HSBC, Natixis and Société Générale.

Fitch yesterday (Monday) downgraded Société Générale’s covered bond issuing arm, SG Société de Crédit Foncier.

Fitch today (Monday) downgraded Société Générale from AA- to A+ due to concerns about the bank’s profitability, in particular in the investment banking division.