Spain

Italy’s UniCredit launched a Eu1bn maximum seven year issue this (Monday) morning that syndicate bankers away from the deal complimented for being “bang-on”, while Spain’s UniCaja is testing investor interest for a Eu500m minimum five year cédulas.

Fitch cut mortgage backed covered bonds issued by Spain’s Cajastur from AAA to AA+ and placed them on Rating Watch Negative yesterday (Thursday), because of a downgrade of the issuer the previous day.

Banco Popular Español achieved a high hit rate on an exchange offer that was completed yesterday (Monday), with around Eu1.4bn of Eu3.5bn of bonds eligible for the exercise being swapped into a new, Eu1.75bn five year cédulas hipotecarias issue – the maximum that the Spanish bank could raise.

Abbey National Treasury Services today (Monday) launched a seven year covered bond that is the euro benchmark market’s first new issue since fellow UK issuer Lloyds TSB Bank sold a Eu2bn 10 year deal last Wednesday. Meanwhile, Banco Popular Español has completed an exchange offer and the first jumbo Pfandbrief since June is being prepared.

Fitch placed AAA mortgage covered bonds issued by Cajamurcia on Rating Watch Negative yesterday (Monday), after placing the issuer on RWN on Friday because its integration into a new banking group with three other cajas was approved.

Fitch downgraded Spanish bank La Caixa from AA- to A+, on stable outlook, yesterday (Monday), because of challenges to the bank’s asset quality posed by a downturn in the Spanish property market and the country’s weak economy.

SNS Bank will today (Tuesday) price the second long dated Dutch benchmark covered bond in a week, while Banco Popular Español has set the spreads for an exchange that is open until Friday and a Swedish covered bond issuer has set up a US MTN programme.

Fitch placed Caja de Ahorros de Murcia and three other Spanish banks on Rating Watch Negative on Friday, because the General Assemblies of the four cajas approved an integration contract to form a banking group through an Institutional Protection Scheme (SIP). The rating agency said the SIP contract is expected to include a legally-binding cross-guarantee mechanism encompassing solvency and liquidity.

New issues for GCE Covered Bonds and UniCredit Bank Austria and a large Caja Madrid tap took this week’s supply of Eu500m-plus deals to a solid Eu6.7bn, with GCE said to have benefitted from a recent paucity of new three year issuance from so-called core jurisdictions.

Fitch placed Caja Madrid on Rating Watch Negative yesterday (Thursday) and Bancaja and Caixa Laietana on Rating Watch Positive, following approval of an integration contract by the General Assemblies of the three cajas and several others to form a group through an Institutional Protection Scheme (SIP).

A new burst of issuance hit the covered bond market this (Thursday) morning after a breather yesterday, with GCE Covered Bonds and UniCredit Bank Austria launching new deals and Caja Madrid offering an increase of a 2014 issue.

Banco Pastor yesterday (Tuesday) became the seventh Spanish issuer to tap the covered bond market in just under three weeks, and the issuer told The Cover that it was “delighted” with the transaction and suffered no ill effects from one lead manager dropping out.