Switzerland

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.

Pfandbriefzentrale der schweizerischen Kantonalbanken yesterday (Wednesday) raised Sfr640m (Eu422m) in the Swiss franc market through a two tranche issue. The transaction, led by Zürcher Kantonalbank, comprised a Sfr350m tap of the issuer’s June 2015 deal and a new Sfr290m 10 year.

Pfandbriefbank schweizerischer Hypothekarinstitute yesterday (Monday) raised Sfr980m (Eu649m) in the Swiss franc market through a three tranche issue.

Investors’ enthusiasm for UBS’s inaugural Swiss covered bond on Monday vindicated the bank’s decision to enter the market and allowed it to achieve its main goals, officials at the bank told The Cover yesterday (Tuesday).

UBS has been fielding questions from investors on the roadshow for the first Swiss covered bond programme. The syndicate for the upcoming inaugural euro denominated transaction was announced yesterday (Thursday) and The Cover spoke to the issuer about the rationale for its entrance into the market, the structure of its programme, and Swiss collateral.

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.

Pfandbriefbank schweizerischer Hypothekarinstitute issued two tranches on Friday, a Sfr350m six year bond priced at 11bp through mid-swaps and a Sfr133m tap of an October 2018 line at 7bp through.