Spain

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.

Caja Madrid yesterday (Thursday) priced the biggest Spanish covered bond issue since May 2008, but one that, according to a syndicate official at one of the leads, prudently balanced size and price.

Stadshypotek this (Thursday) morning reopened the Swedish covered bond segment with a five year benchmark, while Caja Madrid will this afternoon price its first issue of the year, a Eu1.75bn seven year cédulas hipotecarias. Meanwhile, UBS has announced the mandate for its debut.

CajaSur has issued the lowest rated Spanish covered bond, a Eu400m five year floating rate note rated A1 by Moody’s. Meanwhile, buybacks announced by La Caixa take its total for this year to more than Eu1.35bn.

Bilbao Bizkaia Kutxa will this (Tuesday) afternoon price its Eu1bn five year cédulas hipotecarias debut at 58bp over mid-swaps, a “punchy” level that bankers said signalled that pricing expectations might need to be revised tighter. And a tighter level than expected is already being rumoured on the first of several new issues in the pipeline, which includes Dutch, Portuguese and Italian supply.