Italy

EuroWeek and The Cover, in association with Banca IMI and UniCredit, brought together leading issuers and investors from Italy to discuss the importance of obbligazioni bancarie garantite to them, as well as pricing and regulatory issues facing the market.

Banca Monte dei Paschi di Siena reached a Eu1.25bn size with its second obbligazioni bancarie garantite benchmark on Tuesday despite coming on a hectic day. The issuer spoke to The Cover about the deal’s timing, maturity and pricing.

GCE Covered Bonds announced a mandate for a new covered bond this (Wednesday) morning, but otherwise the primary market was quiet after yesterday’s five euro benchmarks and one dollar issue.

Five issuers piled into the euro covered bond market in one of its busiest ever sessions this (Tuesday) morning to take advantage of supportive conditions. Supply included the first deals in a maturity longer than 10 years since June.

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.

More peripheral covered bonds are being mulled for launch in the coming week, but any further issuance by lower ranked credits will have to contend with a weakening of demand, as hinted at by sub-Eu1bn deals for Italy’s Banco Popolare and Spain’s Bankinter yesterday (Thursday). Meanwhile, Compagnie de Financement Foncier has completed a third foray into the US 144A market.

Banco Popolare and Bankinter are bookbuilding for new issues today (Tuesday) amid signs that investor appetite for second tier issuers from peripheral countries could be flagging after a busy two weeks, particularly from Spain.

Banco Popolare is lining up to launch what would be the fourth new Italian covered bond in 10 days, while the dollar market could be reopened today (Wednesday).

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.

Italy’s Banca Carige was happy to follow UniCredit into the obbligazioni bancarie garantite market yesterday (Wednesday), selling a Eu500m three year issue. UniCredit, meanwhile, was pleased with its results after having waited to issue since June, the issuer told The Cover.

UniCredit launched its first benchmark obbligazioni bancarie garantite issue of the year this (Tuesday) morning to extend the market’s post-holiday reopening to Italy, while Spain’s Banco Popular Español is offering a record spread for a Eu500m minimum three year cédulas issue.

ING Bank launched the first Eu1bn-plus covered bond issue of the autumn season this (Monday) morning, with DnB Nor Boligkreditt announcing a new benchmark afterwards. At least one more mandate is expected soon, but some bankers said that the restraint being shown by issuers was encouraging.