France

Landesbank Baden-Württemberg yesterday (Tuesday) tapped its Eu1bn February 2014 Pfandbrief, and Caisse de Refinancement de l’Habitat is today (Wednesday) also taking advantage of a “perfect week” to increase the 10 year Eu1bn issue it priced on 25 March.

Caisse Centrale du Crédit Immobilier de France (3CIF) was cut from A+ to A by Standard & Poor’s yesterday (Wednesday) because of a decline in the quality of its loan portfolio and falling profitability.

Compagnie de Financement Foncier tapped its 2.5% March 2013 Swiss franc bond issue for Sfr150m yesterday (Tuesday) at mid-swaps plus 95bp, 15bp tighter than the launch spread on 10 February.

Caisse de Refinancement de l’Habitat yesterday (Wednesday) returned to the jumbo market with a 10 year covered bond priced at the same level as last week’s Société Générale SCF obligations foncières in the same maturity. This achievement was hailed by market participants, although the issuer was not completely satisfied.

Update: Caisse de Refinancement de l’Habitat hopes to price a new Eu1bn 10 year jumbo covered bond shortly, having already attracted orders of more than Eu1bn after opening books at 1230 CET today (Wednesday).

The ever dwindling appetite for Spanish government-guaranteed paper was clearly evident yesterday (Monday) as Cajamar just about got a Eu1bn deal over the line, but another mandate is already out.

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.