France

Société Générale increased Caisse de Refinancement de l’Habitat’s 4% April 2018 issue by Eu150m this (Friday) morning in a rare glimpse of real money-driven supply in the covered bond market. JP Morgan also privately placed two deals for Bancaja earlier this week.

In brief: Leeds Building Society has executed what is believed to be its first covered bond, while French issuers have been tapping some outstanding issues.

In brief: ING and Crédit Mutuel group members were downgraded this week, but the only covered bonds to have been cut so far this week have been those of Ukraine’s Bank Khreschatyk.

Banque AIG on Friday breached a Moody’s rating trigger in its role as liquidity facility provider for Cédulas TDA 5, FTA. However, the cédulas ratings have so far remained untouched by the breach.

Moody’s yesterday (Wednesday) placed on review for possible downgrade the Aaa rating assigned to Dexia Municipal Agency’s obligations foncières. The move may seem like old news since Dexia’s other liabilities were today given an effective guarantee by the French, Belgian and Luxembourg governments, but it triggered confusion and surprise among analysts.

Moody’s on Friday put the Aaa ratings of Dexia Sabadell’s cédulas territoriales on review for possible downgrade after cutting the bank’s long term rating from Aa2 to A2 and putting this on review for possible downgrade.

Fitch yesterday (Wednesday) affirmed its AAA rating of Dexia Municipal Agency’s obligations foncières. The affirmation comes despite the rating agency’s downgrade of Dexia Crédit Local from AA+ to AA-, with a stable outlook.

Dexia today (Tuesday) received a Eu6.4bn equity injection from governments and other shareholders after the group’s shares fell almost 30% yesterday (Monday). After a trading suspension was lifted this morning the stock rallied around 20%.

Unfazed by the new realities of a covered bond market characterised by wider spreads, Groupe Caisse d’Epargne moved quickly to take advantage of a window of opportunity when it saw one to launch its debut issue on Monday. The issuer told The Cover that while conditions might not be ideal, there is no guarantee they will get any better.

Groupe Caisse d’Epargne’s Eu1bn two year debut, priced yesterday (Monday) at 51bp over mid-swaps, offered no relief from the repricing of the covered bond market signalled by recent transactions.

HSBC, Natixis, Société Générale and UniCredit have been mandated to hold a European roadshow for HSBC Covered Bonds (France) later this month.

Caisse de Refinancement de l’Habitat priced a Eu200m increase to its Eu1bn October 2017 issue this (Tuesday) morning, offering some rare long dated supply, albeit in a low profile transaction.