Sweden

Deutsche Bank may have come first in the all benchmarks ranking for the first half of 2008, but it was by no means the strongest across all markets. Here The Cover reveals the top banks in each of the biggest sectors and examines where the leading banks’ weaknesses lie.

The covered bond market had a deflated feel to it this morning (Thursday) following the temporary postponement of the Swedish Covered Bond Corporation’s new issue. However, market participants refused to be derailed with leads suggesting the bond could return soon in slightly altered form if conditions change. Meanwhile, those outside the deal were unwilling to believe the primary market completely was closed.

After several hours of bookbuilding today, SCBC has pulled, at least temporarily, the short four year euro benchmark deal that it had expected to price later today. The leads blamed market volatility but the deal was also suffering as it came in a similar tenor to the recent Swedbank and DnB Nor new issues that had made heavy weather of bookbuilding.

In brief: With the primary market still active, one Scandinavian issuer has joined the pipeline and a French borrower has completed its roadshow. Meanwhile a fellow Scandinavian issuer has added Namenspfandbriefe to its funding options.

Swedbank is set to price its new Eu1bn three year covered bond this (Thursday) afternoon. However, the deal’s slow progress towards being narrowly oversubscribed was highlighted by some bankers outside the deal, who said that the deal had come too tight to a recent new issue from the Nordic region.

SEB AG nipped into the market this (Wednesday) morning before tomorrow’s continental European holidays to launch a Eu1bn two year public sector Pfandbrief. Some Eu1.25bn of orders had been placed by the time the books were closed late this morning.

Swedbank Mortgage is planning to launch its inaugural euro jumbo covered bond after a roadshow early next month. A funding official in Stockholm told The Cover that the issuer is likely to launch two benchmarks per year.

Skandinaviska Enskilda Banken has avoided being knocked off course by adverse headlines and has priced a new Eu1bn five year benchmark covered bond at 17bp over mid-swaps this morning.

Sweden’s SEB this (Monday) morning opened the books on its new five year euro benchmark, with Caisse de Refinancement de l’Habitat (CRH) happy to hold fire on its deal while it waits for SEB to complete its new issue.

Nordea Hypotek priced its debut Swiss franc covered bond yesterday (Thursday), a Sfr200m deal via BNP Paribas and Credit Suisse to continue the revival of covered bonds in the Swiss market.

Norway’s Terra Boligkreditt is launching its first covered bond in euros, adding yet more Norwegian supply to the market. Sweden’s SEB has mandated banks for a new issue, but is expected to hold off until next week.

Nordea Hypotek priced its Eu1.5bn three year new issue yesterday (Tuesday) afternoon, with the leads declaring that the issuer could find encouragement in where it had priced against other recent mortgage backed deals.