Germany

Martin Rohland is leaving Landesbank Baden-Württemberg to join Barclays Capital’s covered bond syndicate team, The Cover understands.

In brief: Fitch will no longer rate mortgage and public sector Pfandbriefe issued by Deutsche Genossenschafts-Hypothekenbank AG, according to a statement released yesterday (Monday). The bank’s covered bonds will therefore only be rated by Standard & Poor’s.

Pfandbriefe could stand to benefit from the introduction of a new resolution regime for German banks, according to market participants, given that the new regime provides for the possibility of a bail-in of senior unsecured creditors but upholds protections for Pfandbriefe set out in the country’s Pfandbrief law.

Finland’s Sampo Housing Loan Bank launched a Eu1bn five year benchmark on Thursday, its first covered bond since being acquired by Danske Bank in 2006 and the third Finnish euro issue to hit the market this month. Meanwhile Germany’s DVB Bank has sold its first publicly placed ship Pfandbrief and Dexia Municipal Agency is preparing to meet Australian investors.

Credit Suisse is today (Wednesday) making its debut as a standalone covered bond issuer and has attracted strong demand for a Eu1.25bn five year deal despite tight pricing and a challenging market backdrop. Germany’s DVB Bank is in the market with an inaugural ship Pfandbrief.

Bank of New Zealand is said to have met with investors in connection with a possible euro issue, thereby adding to a list of issuers that are roadshowing new programmes and/or preparing inaugural euro market issuance. The stage is set for a record number of debuts in any one month, but a bout of turmoil in the eurozone sovereign debt markets this week means that borrowers and investors will be taking a cautious approach to new business.

Finland’s Aktia Real Estate Mortgage Bank today (Thursday) launched a Eu500m three year issue that slotted into a slipstream created by an inaugural Nordea Bank Finland deal sold on Tuesday, while a Bank für Arbeit und Wirtschaft PSK mandate became the latest addition to a growing deal pipeline.

Euro benchmark covered bond supply slowed to a lone tap from Bayerische Landesbank today (Wednesday), although the pipeline of roadshows grew with the addition of a mandate from the UK’s Clydesdale Bank. Nordea Bank Finland yesterday priced a Eu2bn five year inaugural deal that appears to be the biggest Finnish benchmark covered bond ever.

Concrete plans for new issue projects next week appeared thin on the ground this (Friday) morning, but this could be a misleading indicator of forthcoming supply. At least three issuers are on the road next week, Spanish banks are emerging from blackout periods, and bankers said that French issuers are likely to be encouraged by a successful Compagnie de Financement Foncier Eu1bn 10 year transaction sold yesterday.

Fitch put public sector covered bonds issued by Depfa ACS Bank on negative review today (Wednesday) because of the potential impact of the issuer’s business restructuring.

Royal Bank of Scotland built the second biggest order book for a covered bond this year to price a Eu2bn 10 year deal yesterday (Thursday), which a syndicate banker at one of the leads said was a reward for the careful execution and strong performance of the issuer’s previous transactions. Dexia Kommunalbank Deutschland stuck to the short end of the curve to raise Eu1bn of funding via a three year public sector Pfandbrief.

Fitch upgraded Berlin-Hannoversche Hypothekenbank (Berlin Hyp) from A+ to AA-, on stable outlook, today (Thursday), because of Landesbank Berlin's acquisition of additional shares in Berlin Hyp and announcement that it will enter into a profit and loss transfer agreement with its subsidiary in the near future, subject to shareholder agreement.