Switzerland

UBS attracted $3bn in orders for its latest dollar trade, highlighting the depth of demand for the right European name. Swiss spreads are still cheap by historical standards and US buyers still wary of European supply, but dollar issuance from a strong eurozone name was a possibility, said syndicate bankers.

Dollar issuance continued its record breaking run on Tuesday, as UBS launched its second benchmark of 2012 in that currency. Sterling and dollars have had record first quarters, though euro supply remains subdued.

Australia and New Zealand Banking Group looks set to become the third Australian borrower to issue in its domestic currency. ANZ has mandated leads for a four year dual tranche, fixed and floating rate benchmark. Westpac has issued its first deal denominated in Swiss Francs

Credit Suisse attracted a staggering 168 investors for its $2bn three year trade, more than double the interest recent Canadian dollar benchmarks have enjoyed, and it still had to leave some prospective buyers empty handed. The three year 144a/RegS trade was increased from the original $1bn target print on the back of huge demand, and was priced through the secondary curve of Swiss peer UBS on Thursday evening.

Société Générale built a €6bn book for its second trade of 2012 on Thursday, pricing a €1.5bn benchmark well inside initial guidance. Meanwhile, Credit Suisse launched only the second dollar trade from a European bank since last September.

Swiss franc Australian covered bonds remained in vogue this week, with Commonwealth Bank of Australia issuing the largest one yet — a Sfr775m dual trancher — on Wednesday, after Australia and New Zealand Banking Group opened the way for its peer group with a Sfr725m icebreaking transaction in January.

On Thursday UBS issued its debut dollar deal and the first Yankee covered bond of 2012. The $1.5bn three-year priced in line with guidance on an order book just shy of $2bn. Initial indications suggest the deal relied more heavily on international demand than previous US dollar benchmarks.

The non-eurozone, no-euro theme in the covered bond market continued on Thursday with the announcement of two debut currency benchmarks, one of which was priced. After the successes of Barclays and Nationwide, National Australia Bank issued its first sterling dea, Lloyds mandated for another sterling deal and UBS is set to bring its first dollar deal.

Australia and New Zealand Banking Group issued the first Swiss franc covered bond under the new Australian legislation on Monday — a Sfr725m dual tranche note — which was also the largest new issue in recent years for this asset class.

With the euro pipeline looking light on clear candidates, the Australian market came to life on Tuesday. Commonwealth Bank of Australia’s A$3.5bn five year covered bond, the first from an Australian issuer, is the largest ever Australian dollar FIG transaction. Bank of New Zealand, however, found a very different reception for its euro offering and decided to postpone issuance.

ABN Amro and Credit Suisse maintained primary market momentum on Wednesday, adding another €2.25bn of supply. ABN Amro paid above initial price thoughts to ensure smooth execution of its 10 year, while Credit Suisse was able to price its five year inside UBS’s offering last week — making it the tightest five year euro print of the year.

Though the first day of activity in 2012 brought fewer trades than in 2011, the number of accounts that participated in the deals was up on last year. Almost 400 buyers participated in Tuesday’s salvo, with Germany taking over half of primary allocation.