Germany

Münchener Hypothekenbank sold a Eu1bn three year Pfandbrief yesterday (Tuesday) that the issuer said benefitted from being in jumbo format and enjoyed a high turnout from Asian investors.

Münchener Hypothekenbank attracted strong demand for a Eu1bn three year public sector Pfandbrief launched today (Tuesday) despite it coming at the tightest level for a sizeable new covered bond since August 2008. Meanwhile, the UK’s Abbey National Treasury Services yesterday sold its third and biggest benchmark of the year.

Abbey National Treasury Services today (Monday) launched a seven year covered bond that is the euro benchmark market’s first new issue since fellow UK issuer Lloyds TSB Bank sold a Eu2bn 10 year deal last Wednesday. Meanwhile, Banco Popular Español has completed an exchange offer and the first jumbo Pfandbrief since June is being prepared.

DVB Bank is targeting a Eu250m three year debut ship Pfandbrief, and the issuer told The Cover that it is also considering taking up aircraft covered bonds.

A transparency initiative launched by the Association of German Pfandbrief Banks (vdp) that aims to make it easier for market participants to analyse the cover pools of Pfandbrief issuers has met with approval from covered bond analysts and investors.

A rare one year issue, from Germany’s SEB, was the only live deal this (Monday) morning as the covered bond market got off to a slow start, despite one syndicate banker saying that the market was open for quality supply. Meanwhile, SNS Bank has mandated for a new benchmark.

Standard & Poor’s placed Deutsche Postbank and subsidiary BHW Bausparkasse on CreditWatch Positive yesterday (Wednesday) because of Deutsche Bank’s intention to launch a public takeover bid for Deutsche Postbank.

At least three issuers are understood to be preparing to launch sizeable new covered bonds this week despite no deals being live on the first morning of a working week for the first time since the benchmark market reopened in August. Meanwhile, Dexia has announced spreads on three new benchmarks it is offering as part of an exchange.

Italy’s UBI Banca is today (Monday) following through with a seven year benchmark covered bond that it postponed in early summer, while the UK’s Nationwide Building Society is preparing to return to the market for the first time in three years and Deutsche Kreditbank has priced a Eu500m five year issue.

Banesto sized a five year cédulas hipotecarias at Eu600m yesterday (Thursday), taking Eu500m-plus covered bond issuance over the past five working days to Eu6.9bn. The Spanish issuer told The Cover that it was happy to have been able to issue successfully given how tricky the market has been.

Banesto showed the breadth of the covered bond market’s post-holiday reopening today (Thursday) with a Eu500m minimum five year cédulas hipotecarias. Meanwhile, Berlin Hyp priced a Eu500m issue in the face of low yields and spreads, while Bawag PSK finally emerged after announcing plans for a new issue back in May.

Covered bond supply eased today (Wednesday) after some Eu5.3bn of supply in the past three working days, with no new deals officially live and only DnB Nor, Erste and CRH wrapping up issuance yesterday afternoon.