Pre-migration untagged articles

Some inflation-linked notes were traded this week though structured note demand in general was lighter than of late. Some traders suggested that recent levels of interest had simply outstripped the reality of economic confidence and a true return to widely used structured products remains some way off.

The Belgian government has provided KBC with a Eu20bn guarantee scheme covering structured credit risk including Eu5.5bn notional of its super senior CDOs and Eu14.4bn notional value of counterparty risk on MBIA. The government reacted after the bank revealed a net loss of Eu3.6bn in its first quarter earnings statement on Thursday.

UK developer Land Securities confirmed this week that Land Securities Capital Markets, its £5.7bn hybrid whole business securitisation, would enter "initial tier three" of its covenant regime in June.

In May 2008, Iberdrola signed a revolutionary new EMTN programme — a Eu1.5bn structured note shelf that outsourced the Spanish utility’s funding decisions to Banesto, one of its relationship banks. A year on, market participants remain divided about its timing, success so far and future usefulness.

Asian demand represented the driving force behind the vanilla private placement market this week with big deals placed in yen, dollars and Hong Kong dollars.

A large long-dated trade from BBVA demonstrated strong confidence in banks in the European commercial paper market this week. Such deals from financial names have been rare of late and dealers believe the trade could prompt further issuance from banks that require funding.

BNP Paribas sold a Sfr275m five year covered bond on Monday, the first public mortgage backed covered bond in Swiss francs since September and the largest in over a year.

BNP Paribas Home Loan Covered Bonds on Wednesday issued a Eu1.25bn May 2012 deal that is the first jumbo covered bond since September in the three year maturity, a part of the curve that has for most of the year been dominated by government guaranteed bank issuance.

Brandbrew, a triple-B subsidiary of Anheuser-Busch, amazed bankers in Zurich by selling a Sfr600m five year deal on Thursday.

Compagnie de Financement Foncier this week launched the longest dated covered bond since June 2008, a Eu1.25bn 12 year issue that was also the issuer’s first jumbo in more than a year.