Nordics

Public benchmark covered bond issuance could become more attractive for Norwegian financial institutions after the Norwegian central bank on Wednesday indicated that it could adjust the pricing of a swap agreement introduced in October that gives financial institutions the possibility to swap Norwegian covered bonds for government securities.

Moody's and SEB AG are in discussions about the latter’s proposals to enhance its covered bond programmes to avert a downgrade, the rating agency said yesterday (Monday).

Swedbank Hypotek issued a two year Swiss franc mortgage backed covered bond yesterday (Wednesday).

Covered bonds are edging their way back into the Swiss franc market. As well as an appearance from Pfandbriefbank schweizerischer Hypothekarinstitute, Landesbank Baden-Württemberg sold a public sector Pfandbrief this week and Swedbank is bookbuilding for a mortgage-backed covered bond.

Aktia Real Estate Mortgage Bank successfully priced a Eu600m, Aa1 covered bond this (Wednesday) morning, which bankers said highlighted the flexibility on offer in the market.

Aktia Real Estate Mortgage Bank is today (Tuesday) sounding out investors for a five year non-jumbo.

Deutsche Bank has closed books on its debut Pfandbrief issue and will price the seven year issue at 55bp over mid-swaps, the tight end of guidance, while BNP Paribas also looks set to hit a relatively tight level on its first public sector obligations foncières.

Swedbank Mortgage on Friday priced a Eu1.25bn five year jumbo at 130bp over mid-swaps and while the pricing it got could have been better, the issuer told The Cover, it was a price worth paying.

Swedbank Mortgage will this (Friday) afternoon price the first Swedish jumbo since the European Central Bank’s announcement three weeks ago, a Eu1.25bn five year mortgage-backed benchmark. And a further issue from non-euro Scandinavia could be on the horizon.

Moody’s yesterday (Monday) downgraded Aktia Real Estate Mortgage Bank’s covered bonds from Aaa to Aa1 because of a deterioration in the credit strength of the issuer.

Moody’s today (Thursday) cut Storebrand Bank’s rating from A2 to A3, on negative outlook, on lower profitability and a downgrade of its parent, Storebrand ASA, to Baa3.

Moody's yesterday (Monday) placed on review for possible downgrade Swedbank’s long term debt rating and the senior rating of Swedbank Mortgage.