Spain

Ahorro Corporación Financiera launched the largest 10 year Spanish covered bond since July 2007 yesterday (Tuesday), a Eu500m AyT Cédulas Cajas issue. An ACF official told The Cover that the size matched investor and savings bank interest in the transaction.

New issues from Spain and Norway launched this (Tuesday) morning after UBS’s second benchmark covered bond yesterday (Monday) are making this week busier than most market participants had been expecting.

CIF Euromortgage yesterday (Thursday) priced a Eu1.25bn April 2012 obligations foncières issue at 10bp over mid-swaps, matching Compagnie de Financement Foncier in achieving the tightest level for a benchmark covered bond this year. Meanwhile, Caja Murcia’s issuance plans are understood to be on hold.

Three-quarters of a Eu500m five year Ibercaja cédulas issue launched yesterday (Tuesday) was sold to domestic investors, according to a banker at one of the leads, with the approaching year-end and non-jumbo format limiting the potential investor base for the deal.

Ibercaja has closed the order books for a Eu500m five year cédulas issue, which is due to be priced at the tight end of guidance later today (Tuesday).

Westdeutsche Immobilienbank has wrapped up a Eu500m three and a half year issue this (Monday) morning and Ibercaja is soft-sounding for a similarly sized five year deal.

In brief: Ibercaja is expected to launch its first benchmark covered bond early next week, while Caja de Ahorros de Murcia has mandated leads for a new issue.

A Eu1bn five year cédulas hipotecarias priced for Caja Madrid yesterday (Thursday) brought the number of benchmark issues from Spain launched since the beginning of September to 10, representing a concentration of activity unmatched by recent supply from other jurisdictions.

Bankinter priced a Eu1bn five year cédulas hipotecarias on Tuesday, almost exactly six months before the maturity date of the last benchmark it launched, a Eu1.5bn two year deal. The issuer told The Cover that it decided it would play it safe by prefunding.

Caja Madrid is in the market with a Eu1bn five year benchmark covered bond that is being marketed at 70bp-75bp over mid-swaps, wider than where the bank sold a Eu1.75bn seven year at the end of September.

Compagnie de Financement Foncier has closed books on a Eu1.5bn long two year deal, which will be the shortest dated and tightest benchmark covered bond to be priced this year. Meanwhile, Corealcredit will shortly close books on a four year mortgage Pfandbrief, and levels wider than where a Bankinter benchmark was priced yesterday (Tuesday) are being whispered for a forthcoming Caja Madrid cédulas issue.

Bankinter is today (Tuesday) pricing a five year benchmark that market participants hope will provide welcome relief from recent Spanish deals that have not performed in the secondary market. Meanwhile, other borrowers are embarking on roadshows ahead of deals to be launched as early as next week.