Spain

Bancaja will size a three year cédulas hipotecarias launched yesterday (Monday) below its Eu1bn target and price it at the wide end of guidance, prompting some bankers to suggest that the transaction was a deal too far for the Spanish covered bond market. Meanwhile, UBS has mandated a new issue.

Bancaja today (Monday) became the seventh Spanish issuer to tap the benchmark covered bond market in eight working days, while Portugal’s Banco Santander Totta is following through with a deal announced before Fitch last Wednesday cut its sovereign’s rating. Meanwhile, an Italian bank will soon be on the road.

Banco Santander Totta is understood to be considering whether to proceed with launching a covered bond early next week, with market participants discussing the pros and cons of issuance not only for the Portuguese bank, but also for Spanish banks that have been rushing to market.

Bankinter today (Thursday) launched a Eu1bn three year deal that is the seventh cédulas transaction in as many days, including taps, while a downgrade of Portugal’s rating by Fitch yesterday (Wednesday) has been an extra factor for Banco Santander Totta to consider as it approaches the market.

Banco Bilbao Vizcaya Argentaria is today (Wednesday) in the covered bond market with the week’s ninth deal, after Deutsche Postbank earlier today priced a Eu1bn 10 year Pfandbrief that took supply of Eu500m-plus issues to Eu5.2bn over the first three days of the week. Meanwhile, Portugal’s Banco Santander Totta has announced plans to tap the market.

Banco Popular Español, OTP Mortgage Bank, Swedish Covered Bond Corp, and Westdeutsche Immobilienbank are all in the market today (Tuesday) with covered bonds. Syndicate officials said that the market was receptive, although only one issue has had pricing at the tight end of guidance confirmed.

La Caixa and Banco Bilbao Vizcaya Argentaria this (Monday) morning accessed the covered bond market after Santander reopened the cédulas sector last Thursday, with market participants cautiously constructive about the prospects for yet more Spanish issuance. Meanwhile, Swedish Covered Bond Corp has announced plans to tap the market.

Three Spanish banks are said to be looking to raise funding in the covered bond market after Santander reopened the cédulas sector yesterday (Thursday).

Fitch yesterday (Tuesday) placed on rating watch negative 48 of the 54 multi-cédulas it put under analysis in December and affirmed the remaining six at AAA. In the absence of remedial action, the issues placed on rating watch negative are in the majority of cases likely to be cut to between AA+ and AA-, said the rating agency.

Banco Santander closed the books on a Eu1bn five year cédulas hipotecarias issue yesterday (Tuesday) afternoon after five-and-a-half hours of bookbuilding, with orders only just matching the deal size.

Banco Santander opened books on a five year cédulas hipotecarias with guidance of the 50bp over mid-swaps area this (Tuesday) morning, surprising market participants because a 10 year issue had initially been expected. Meanwhile, Dexia Municipal Agency is said to be preparing a 12 year benchmark.