Sweden

UBS made an impressive debut in the covered bond market this (Monday) morning, gathering over Eu7bn of orders. Unicaja also got off to a strong start in the asset class with its inaugural issue, while Swedbank Mortgage will price a larger than expected deal, even if bookbuilding was the slowest of the morning’s deals.

Covered bonds made a comeback in the Swiss franc market this week, as investors reached for a highly rated asset class that, unlike other triple-A product, still offers a spread above mid-swaps.

Stadshypotek yesterday (Thursday) priced a Eu1.5bn five year covered bond, the first new issue launched since the European Central Bank’s purchase programme started that is not eligible for the scheme. But the issuer’s strong credit and cover pool gave it confidence that this would not be a worry for the transaction, it told The Cover. And the Swedish deal already has a successor, with Swedbank Mortgage lined up to launch a seven year issue early next week.

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.

Moody’s yesterday (Tuesday) downgraded several Scandinavian financial institutions that either issue covered bonds or are closely linked to issuers, concluding reviews for possible downgrade that were initiated on 22 July.

Nordea Hypotek has issued a Nkr750m (Eu86m) five year covered bond, catering to Norwegian krone investors that need triple-A securities but are struggling to find paper from domestic issuers.

Moody’s yesterday (Wednesday) placed on review for possible downgrade the long term ratings of several Nordic covered bond issuers.

Moody's and SEB AG are in discussions about the latter’s proposals to enhance its covered bond programmes to avert a downgrade, the rating agency said yesterday (Monday).

Swedbank Hypotek issued a two year Swiss franc mortgage backed covered bond yesterday (Wednesday).

Covered bonds are edging their way back into the Swiss franc market. As well as an appearance from Pfandbriefbank schweizerischer Hypothekarinstitute, Landesbank Baden-Württemberg sold a public sector Pfandbrief this week and Swedbank is bookbuilding for a mortgage-backed covered bond.

Swedbank Mortgage on Friday priced a Eu1.25bn five year jumbo at 130bp over mid-swaps and while the pricing it got could have been better, the issuer told The Cover, it was a price worth paying.

Swedbank Mortgage will this (Friday) afternoon price the first Swedish jumbo since the European Central Bank’s announcement three weeks ago, a Eu1.25bn five year mortgage-backed benchmark. And a further issue from non-euro Scandinavia could be on the horizon.