Switzerland

Bank of New Zealand is said to have met with investors in connection with a possible euro issue, thereby adding to a list of issuers that are roadshowing new programmes and/or preparing inaugural euro market issuance. The stage is set for a record number of debuts in any one month, but a bout of turmoil in the eurozone sovereign debt markets this week means that borrowers and investors will be taking a cautious approach to new business.

Credit Suisse is close to launching the first issue off a new covered bond programme, which would make it the second Swiss bank to issue a standalone covered bond and the second outside the country’s Pfandbrief Act.

UBS yesterday (Wednesday) priced a Eu1.25bn 12 year issue, the biggest deal in the maturity this year. A reverse enquiry from a German insurance company was the initial spark for the transaction, according to a syndicate official at one of the leads.

UBS this (Wednesday) morning launched a Eu1.25bn 12 year transaction that will conclude what, according to Dealogic, has been the busiest quarter in the history of the benchmark covered bond market. Meanwhile, an Austrian issuer is preparing to return to the market after an absence of almost five years.

UBS yesterday (Wednesday) launched the week’s third three year in quick succession but there was still enough demand for the leads to size a Eu1.5bn deal on the back of a Eu2bn order book.

The benchmark covered bond market is today (Wednesday) set to break through the previous record for issuance in a week, with HSBC Covered Bonds and UBS having launched seven and three year deals, respectively, and Abbey understood to be whispering a five year issue.

The Swiss National Bank is halting its purchases of Swiss franc private sector bonds, including covered bonds.

Canadian Imperial Bank of Commerce priced the first Canadian covered bond in Swiss francs yesterday (Tuesday), a Sfr675m (Eu447m) two tranche transaction. The issuer spoke to The Cover about why it chose to tap the market rather than Canadian dollars or euros.

Pfandbriefbank schweizerischer Hypothekarinstitute took advantage of tight spreads in the Swiss franc market to raise Sfr435m (Eu308m) yesterday (Tuesday) afternoon, in what is expected to be its last issuance of 2009.

UBS is set to price only its second covered bond, after having built an oversubscribed order book this (Monday) morning for a 10 year follow-up to its five year debut of September. And the first Norwegian euro benchmark of the year is expected tomorrow (Tuesday).

Moody’s downgraded UBS from Aa2 to Aa3 yesterday (Wednesday) and left the rating on negative outlook, citing “considerable challenges” the bank faces in its investment banking and wealth management businesses.

Pfandbriefbank schweizerischer Hypothekarinstitute raised Sfr825m (Eu564m) in the Swiss franc market on Monday through a three tranche issue.