Italy

Bancaja today (Monday) became the seventh Spanish issuer to tap the benchmark covered bond market in eight working days, while Portugal’s Banco Santander Totta is following through with a deal announced before Fitch last Wednesday cut its sovereign’s rating. Meanwhile, an Italian bank will soon be on the road.

Banca Popolare di Vicenza could launch a debut covered bond later this year, a funding official told The Cover after the bank launched a Eu500m three year senior unsecured floating rate note yesterday (Tuesday).

A period of instability brought on by mounting concerns about peripheral sovereigns meant that Banco Popolare had to wait more than three weeks to launch a deal after embarking on a roadshow, but the issuer was rewarded with an oversubscribed order book and strong support from real money accounts. Meanwhile Caisse de Refinancement de l’Habitat has launched two taps.

Banco Popolare has priced a Eu1bn seven year issue that is the first Italian benchmark covered bond of the year and the first from a southern European jurisdiction since concerns about peripheral sovereigns’ finances flared up.

Crédit Mutuel-CIC priced the third benchmark covered bond of the week yesterday (Thursday) afternoon, but with the European Union’s statement in support of Greece having failed to calm nerves, the two day burst of activity could prove to have marked the eye of the storm, rather than its end.

Crédit Mutuel-CIC this (Thursday) morning launched its second benchmark in just over a month, marketing a seven year transaction that follows a five year deal sold on 7 January.

Benchmark supply is expected to be thin on the ground this week, even though some institutions have concluded preparations for covered bond issuance. But while blackouts and an unpredictable sovereign market might stymie euro supply, bankers have not ruled out shorter dated issuance from core jurisdictions.

Aareal Bank was first into the covered bond market this (Monday) morning, opening books on a Eu500m five year mortgage Pfandbrief. Meanwhile, Groupe Caisse d’Epargne is building a shadow order book for its first benchmark since September 2008 and a handful of other issuers have announced mandates.

A Eu1bn 10 year obbligazioni bancarie garantite issue for UBI Banca yesterday (Thursday) showed that despite the approaching year-end there is still demand from investors looking for yield at the long end of the curve, said a syndicate official at one of the leads.

UBI Banca launched a Eu1bn 10 year mortgage-backed covered bond this (Thursday) morning, tackling the complications of launching a new issue close to year-end to prevent this week from becoming the first since the week of 22 June without any benchmark supply (including taps).

UBI Banca is understood to be holding investor meetings from today (Monday) to Wednesday, although a syndicate official familiar with the meetings said that they were not directly deal driven.

Banca Carige on Wednesday positioned itself in the benchmark covered bond market for the first time, with a Eu1bn seven year issue. As a mid-sized regional bank that is primarily funded by deposits, it had to overcome weak name recognition, but the issuer told The Cover that it is satisfied with the reception its benchmark received in the end.