Sweden

Standard & Poor’s has promoted Swedish covered bonds to the highest programme category under its revised rating methodology. The reclassification comes before a Wednesday deadline the rating agency set itself to conclude reviews initiated as a result of the change in its criteria.

Sweden’s SEB launched a benchmark covered bond yesterday (Thursday) to demonstrate its ability to access the market in uncertain times, the issuer told The Cover, despite having last year pre-funded a large amount of debt maturing this year and the beginning of next.

Covered bond issuance of Eu500m or greater deals this week is set to top Eu10bn today (Thursday), with SEB having launched the 12th such issue. Meanwhile, WestImmo launched the third Eu500m Pfandbrief of the week this morning.

Confident of investors’ appreciation of changes it has made to improve its credit profile, Swedbank Mortgage yesterday (Monday) at short notice launched a five year benchmark transaction without any deal-specific preparation, the issuer told The Cover.

The covered bond market had one of its busiest ever sessions this (Monday) morning, with four institutions making the most of an issuance window despite overall sentiment remaining fragile.

With more than Eu4bn of benchmark issuance priced yesterday (Wednesday), there were no signs of the covered bond market slowing down after a record first quarter. And pricing at the tight end of guidance for three new benchmarks showed spreads holding up under the heavy supply.

Spread guidance on new issues launched this (Wednesday) morning was wider than levels heard yesterday, but with re-offers ultimately fixed at the tight end of guidance, syndicate bankers were speaking of a good day for covered bonds. Meanwhile, Spanish supply emerged in the form of two taps.

Stadshypotek and Société Générale today (Tuesday) announced mandates for benchmark covered bonds that market participants said are likely to be launched tomorrow (Wednesday). At least one other issuer is said to be planning to access the market, despite a short working week and reduced investor availability due to the Easter holidays.

Sweden’s covered bond issuers have agreed on a single calculation and presentation of loan-to-value ratios for mortgage cover assets to enhance the transparency and comparability of their cover pools.

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.