Ireland

HSH Nordbank has completed the European roadshow for the first euro benchmark ship Pfandbrief and, surprisingly, eschewed vague remarks on a launch date and instead attempted to book a slot in what is expected to be either a busy or a very difficult January for issuance. Meanwhile AIB Mortgage Bank raised Eu175m through a tap of its 2017 issue.

The wisdom of AIB Mortgage Bank’s decision to try to issue a three year covered bond via Barclays Capital, BNP Paribas and Deutsche Bank this week was being questioned today after the bank’s decision to pull its issue yesterday (Tuesday). While market participants understood the decision to suspend its issue in light of the deterioration in market conditions, they asked why AIB tried to come to such an oversupplied and fragile market with a deal that has now only further undermined sentiment.

AIB Mortgage Bank has taken the unprecedented step of postponing its planned three year covered bond more than a day after opening books for the issue, citing the “extreme volatility in the credit markets”. The decision threatens to further damage sentiment in the covered bond market, which one syndicate manager described as “poisoned”.

AIB Mortgage Bank was said to be struggling to build a book for its three year mortgage backed jumbo covered bond this (Monday) morning at guidance of 10bp over mid-swaps as the heavy pipeline appeared to have finally broken the primary market’s back, with covered bond investors finding plenty of reasons not to buy. Abbey is said to have postponed its planned issue in light of the torrid conditions.

Depfa is setting up a 144A US MTN programme and is on the road in the States. Until now Depfa has issued its 144A benchmark deals on a standalone basis.

Fitch Ratings delivered an optimistic assessment of the performance of the leading Portugese banks in the first half of 2007. The report, published on Friday, expects the banks to maintain this strong performance despite recent difficult market conditions.

Depfa ACS Bank reopened the dollar covered bond market today with a $2bn three year benchmark, albeit in Eurobond format rather than targeting US accounts.