France

Crédit Mutuel-CIC priced its Eu2bn three year issue today (Friday) at 6bp over mid-swaps, having built a book of Eu3.6bn.

ABN Amro, BNP Paribas and Danske Bank are understood to have taken orders of Eu3.6bn for Crédit Mutuel-CIC’s Eu2bn deal by the time the books were closed early this afternoon, after opening books early this morning.

The launch of the first Spanish covered bond since before the summer got closer today (Tuesday) with the announcement that Barclays Capital, Commerzbank, LBBW and Natixis have been mandated for IM Cédulas 11, which will be a short dated benchmark issue and is due in mid-November. Crédit Mutuel-CIC of France has also mandated a new issue.

BNP Paribas has priced its Eu2bn two year structured covered bond at mid-swaps plus 4bp. The initial price guidance was plus 5bp for the fixed size of Eu2bn and the deal has already tightened to 2bp over.

Compagnie de Financement Foncier wrapped up a busy two days in the markets yesterday (Wednesday) afternoon, pricing a $1.25bn (Eu890m) three year Eurobond hours after selling the largest ever obligations foncières issue, a Eu2.5bn 10 year deal.

BNP Paribas is expected to price its Eu2bn two year structured covered bond today (Wednesday) at 4bp over mid-swaps.

Compagnie de Financement Foncier priced the largest ever obligations foncières issue this (Wednesday) morning, a Eu2.5bn 10 year jumbo that reopened the long end of the covered bond market.

Compagnie de Financement Foncier has opened the books for the longest dated jumbo covered bond since the credit market volatility shut the market down in mid-August.

Caisse de Refinancement de l’Habitat (CRH) has completed a Eu700m increase to its October 2015 issue on the back of a Eu1.2bn order book. Guidance started at 7bp over mid-swaps and was tightened to plus 6bp three and a half hours after books opened this morning.

Compagnie de Financement Foncier reopened the obligations foncières sector today with a Eu1bn five year issue priced at mid-swaps flat that confirmed the covered bond market’s recovery.

Caisse de Refinancement de l’Habitat expects to price a Eu2bn three year issue this (Thursday) afternoon, which will be its first transaction to include a market-making commitment.

Since HBOS blazed the trail in 2003, the structured covered bond has spread to other jurisdictions, including Germany, where Landesbank Berlin is attempting to launch the first non-Pfandbrief German covered bond. But is this development good for the long term health of the market? Philip Moore reports.