Pre-migration untagged articles

Banco Bilbao Vizcaya Argentaria on Monday launched the first big new Spanish covered bond in three months on the back of improved market sentiment for Spanish debt. A record re-offer spread of 195bp over mid-swaps, the tight end of guidance, attracted more than Eu3bn of orders to the three year mortgage-backed issue, which was sized at Eu2bn. Will other cédulas issuers be tempted to follow BBVA into the market? Read EuroWeek on Friday to find out.

Santander Consumer Bank had little trouble placing its Eu567m German auto loan securitisation ahead of the summer break, but supply is set to dry up as investors go on holiday and issuers take on board new regulations. Read EuroWeek on Friday to find out what’s in store.

With most banks in blackout ahead of publishing second quarter results, the market has been consumed by rumour and speculation around the European bank stress tests which are due after market close on Friday. EuroWeek on Friday surveys market opinions on how much capital banks will need to raise after the results, and what their options are.

Strong demand for dollars has propelled EIB, KfW and Cades into the market this week and a Canadian province could issue on Thursday as Asian buyers in particular continue to put in large orders. EIB trumped its price guidance of mid-swaps plus 17bp for its three year global, printing $3bn at plus 16bp. KfW has a $1.75bn book for its seven year Eurodollar and Cades a similar result for its three year Eurodollar bond. In the euro market ICO is issuing a five year at mid-swaps plus 175bp, a juicy 65bp over the Bonos curve. Read EuroWeek on Friday for news and views on this week’s trades — and on how long the buying bonanza will continue.

The Ukraine sovereign will not tap the international debt capital markets this side of the summer break and EuroWeek understands that Ukrainian mining company Ferrexpo has also decided to wait for the autumn to price its note. EuroWeek finds out why, and what price they may try to command later in the year.

Macquarie Capital has added two senior bankers to its European advisory team, as part of its push to increase its equities and capital markets capacity in the region.

Mortgage backed securities will remain eligible as collateral for covered bonds, albeit subject to new conditions, until at least 2013, after the European Parliament passed amendments to the Capital Requirements Directive.

Dealers of private EMTNs: Non-syndicated deals for less than $250m excluding financial repackaged SPVs, GSE issuers, self-led deals and issues with a term of less than 365 days.

Standard & Poor’s on Wednesday downgraded public sector-backed covered bonds issued by Portugal’s Banco BPI by five notches, from AAA to A, under its revised rating methodology.

A range of issuers sold dollar rate structures into Asia this week, but bankers say there would be even more activity if rates improved.

Compagnie de Financement Foncier sold a $1.8bn two year 144A issue this week, returning to the market despite the underperformance of a US targeted dollar benchmark covered bond launched earlier this year.