Norway

BNP Paribas priced the biggest benchmark covered bond since the middle of April yesterday (Wednesday) to wrap up the busiest day in the market since then, with Sparebanken Vest and Dexia Kommunalbank Deutschland also taking half a yard each out of the market.

Three issuers launched euro covered bonds this (Wednesday) morning ahead of a public holiday in many parts of Germany tomorrow, with market conditions said to be better than yesterday, although still weak. Meanwhile, the US market could see its first new covered bond supply since mid-April.

Norway’s Møre Boligkreditt is today (Thursday) selling a Nkr800m (Eu100.26m) seven year floating rate note, its second publicly launched covered bond. Moody’s has assigned the covered bonds a definitive Aaa rating, which the issuer told The Cover was important for reaching an international investor base.

Hopes that benchmark covered bond issuance could restart next week have been reined in after reports that French president Nicolas Sarkozy threatened to pull out of the euro-zone contributed to renewed volatility today (Friday).

The Norwegian Covered Bond Council, which was established in January, aims to enhance Norwegian covered bonds and promote them to domestic and foreign investors, according to Norwegian market participants.

Norway’s KLP group is finalising a public sector covered bond programme for its KLP Kommunekreditt public sector lending business.

Austria’s Bank für Arbeit und Wirtschaft (Bawag) and Norway’s Sparebanken Vest Boligkreditt today (Wednesday) announced that they will go on covered bond roadshows in the week of 17 May, although because of market volatility the new issue market remains closed.

DnB Nor Boligkreditt yesterday (Monday) sold the biggest five year benchmark of the year, while a Eu1bn 10 year BNP Paribas Home Loan issue attracted yield-oriented demand in a well supported covered bond market.

Three issuers this (Monday) morning launched or tapped benchmark covered bonds in a market buoyed by an agreement over the weekend on terms of an emergency loans package for Greece. Meanwhile, Dexia Municipal Agency has mandated for a deal that could be launched tomorrow (Tuesday).

Compagnie de Financement Foncier priced a Eu1bn five year covered bond this (Thursday) morning, while DnB Nor Boligkreditt has announced a mandate for a deal that market participants expect to be launched next week.

Fitch has revised the outlook on the A long term issuer rating of SpareBank 1 Boligkreditt from stable to negative, but upgraded its support rating from 2 to 1.

SpareBank 1 Boligkreditt launched a Eu1.25bn seven year covered bond a day earlier than planned yesterday (Wednesday) after being encouraged by feedback sparked by the deal’s announcement on Tuesday, the issuer told The Cover.