Spain

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.

Banca Carige is likely to set the maturity of its debut benchmark covered bond at seven years, according to market participants. Meanwhile, a Spanish name is said to be looking closely at the market with the possibility of an imminent deal and Dexia’s Luxembourg registered arm is aiming to settle some unfinished business.

Cajamar faced a fatigued cédulas hipotecarias market when it launched its public debut yesterday (Thursday) morning, but the issuer benefitted from an extensive roadshow and, according to syndicate officials at the leads, was right to announce that the issue could be sub-Eu1bn.

In brief: Cajamar has closed books on a Eu750m five year cédulas hipotecarias issue that will be priced at 85bp over mid-swaps.

A Eu1bn five year Caja de Ahorros del Mediterráneo cédulas hipotecarias on Friday concluded a difficult week in the covered bond market to the issuer’s and the leads’ satisfaction. This week looks set to be quiet again, with two or three issues expected, although market participants were this (Monday) morning more relaxed about the outlook than they were last Monday.

Caja de Ahorros del Mediterráneo attracted Eu1.1bn of demand for a Eu1bn five year cédulas hipotecarias this (Friday) morning, which market participants said was a success for the issuer in a difficult market. Meanwhile, another Spanish savings bank is wrapping up its roadshow.

The benchmark covered bond market is set to experience a welcome slowdown this week, with Abbey National the only issuer widely expected to launch a deal as others busy themselves with the preparatory work of meeting with investors.

A Eu1bn five year cédulas hipotecarias for Banco Bilbao Vizcaya Argentaria priced at the wide end of guidance could signal a welcome leveling of the balance of power between investors and issuers in the covered bond market, according to one banker this (Wednesday) morning. Meanwhile Danske is in the market with a new issue, National Bank of Greece has completed the first Greek benchmark, and we include here a wrap-up of some distribution statistics from earlier in the week. [Updated to correct BBVA pricing.]

Banco Bilbao Vizcaya Argentaria is understood to have gathered more than Eu1bn of orders for a five year issue that is officially being marketed at 28bp-30bp over mid-swaps.