France

Skandinaviska Enskilda Banken is today (Monday) tapping the market with a five year benchmark covered bond, the first in six months for an issuer away from France and Germany.

Aareal’s debut SoFFin-backed issue has been the highlight of government-guaranteed supply this week, while BNP Paribas is today (Wednesday) adding momentum to a reopening of the unguaranteed senior bank market.

Société Générale today (Wednesday) priced a Eu1.25bn 10 year public sector obligations foncières issue after meeting with healthy demand for a deal that visited a part of the curve that has not been tapped by a jumbo since May last year.

Breaking news: Société Générale has opened books on a public sector obligations foncières issue, a 10 year deal that is the first benchmark issue in that part of the curve since ING tapped the maturity in May 2008.

Bankers are hopeful that the jumbo covered bond market could be reopened next week, saying that several issuers are potential candidates, but that one in particular is most likely to test the market.

Caixanova has finally opened books on its first government-guaranteed issue, albeit at the widest spread yet for a Spanish issue. Meanwhile, Dexia and Lloyds yesterday (Tuesday) set new benchmarks for size in the government-guaranteed asset class.

Dexia Crédit Local today (Tuesday) found its second visit to the government-guaranteed market easier than its first and is set to price its new issue this afternoon. Meanwhile Lloyds TSB found demand from unexpected areas in sterling and OeVAG wrapped up its four year euro.

Moody’s yesterday (Monday) downgraded HSBC Bank plc’s debt and deposit ratings from Aa1 to Aa2 and its financial strength rating from B to C+ with negative outlooks.

Dexia Crédit Local is hoping to win over investors to its three-way guaranteed paper when it comes to market tomorrow (Tuesday), while OeVAG has today (Monday) been negotiating the differences in opinion on Austrian spreads.

Dexia is understood to be committed to maintaining its Pfandbrief issuance through Dexia Kommunalbank despite the retrenchment into core markets that the group is planning as a result of its problems.

Moody’s on Friday changed the outlook from stable to negative on Caisse Centrale du Crédit Immobilier de France (3CIF), which is rated A1.

Compagnie de Financement Foncier printed a Sfr350m (Eu232m) four year obligations foncières issue yesterday (Tuesday), its first public deal of the year, excluding two taps, and its largest public deal since June 2008, according to data from Dealogic.