Germany

Moody’s put the Aa3 rating of public sector covered bonds issued by Depfa ACS Bank on review for downgrade today (Thursday) because of a cut in the issuer’s rating from A3 to Baa3 last Friday.

Supply of sizeable euro covered bonds was this week at its lowest since the benchmark market reopened at the end of August, but activity is expected to pick up again next week, with issuers also said to be preparing for issuance in dollars and niche currencies. Meanwhile, Denmark’s Nykredit Realkredit today (Friday) launched an inaugural euro junior covered bond transaction.

Moody’s has cut the ratings of Depfa plc and Depfa ACS Bank from A3 to Baa3 following a transfer of assets to the Hypo Real Estate’s wind-down entity, FMS Wertmanagement, that the rating agency said is part of a process whereby the Irish entities will be less likely to enjoy support.

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.