North America

Swedish Covered Bond Corporation is preparing to price at the tight end of revised guidance a Eu1bn five year issue that was more than twice subscribed, while CIBC met strong demand for the first benchmark covered bond aimed at US investors in two-and-a-half years.

The first US-targeted benchmark covered bond for two-and-a-half years could be launched as early as today (Monday), with non-US issuers said to be testing whether US investors are ready to return to the asset class.

Standard & Poor’s yesterday (Monday) affirmed a further five covered programmes at AAA under its new covered bond rating methodology, taking the number of programmes that have kept their top rating to 11.

Liz Padova Hanson, who was previously head of US covered bond structuring at RBS/ABN Amro, has joined Barclays Capital as a managing director in the bank’s asset securitisation origination business in the Americas.

Democrat and Republican members of the House Financial Services Committee welcomed an initiative to establish covered bond legislation during a full hearing yesterday (Tuesday), highlighting the contribution the asset class could make towards reviving and growing the US mortgage market without the need for costly government support.

Witnesses at the House Financial Services Committee hearing on covered bonds today (Tuesday) are set to support moves to introduce covered bond legislation in the US, but there does not appear to be a consensus as to how broad the range of assets eligible as collateral should be.

Moody’s has endorsed legislation proposed by Congressman Scott Garrett a day before the House Financial Services Committee will hold a hearing on the prospects for covered bonds in the US.

Ahead of Tuesday’s House Financial Services Committee hearing, Congressman Scott Garrett spoke exclusively to The Cover’s Neil Day yesterday (Thursday) about his push for the development of a US covered bond market and the chances of legislation being passed. Read the full interview here.

Congressman Scott Garrett told The Cover yesterday (Thursday) that he is optimistic that covered bonds can gain bipartisan support and also overcome the concerns of the Federal Deposit Insurance Corporation, in an exclusive interview before next Tuesday’s House Financial Services Committee hearing.

Canadian Imperial Bank of Commerce is in the market today (Tuesday) with the first non-domestic currency Canadian covered bond of the year, a debut, two tranche Swiss franc issue.

We don’t normally do this but, hey, it’s nearly Christmas: this Washington Post story on Neel Kashkari – former assistant Treasury secretary, TARP czar, and lead official on the last administration’s covered bond push – is too good to miss.

Howard Goldwasser, formerly of Allen & Overy, has joined Curtis, Mallet-Prevost, Colt & Mosle as a partner in the firm’s New York office.