Switzerland

Hypo Investmentbank issued a Sfr150m November 2012 covered bond through Credit Suisse yesterday (Monday) at a spread of 42bp over swaps, in a deal that enabled it to match Swiss franc assets in its cover pool.

The Swiss National Bank this (Thursday) morning congratulated itself on the success of its covered bond purchase programme, which could hold clues as to how other central bank schemes might work.

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.

Pfandbriefbank schweizerischer Hypothekarinstitute set the size of its September 2016 tap at Sfr309m yesterday (Thursday) afternoon and priced it at 3bp over mid-swaps, a level made possible by the Swiss National Bank’s intervention in its domestic covered bond market.

In brief: Pfandbriefbank schweizerischer Hypothekarinstitute is tapping its September 2016 2.25% bond this afternoon via Credit Suisse.

BNP Paribas sold a Sfr275m (Eu183m) September 2014 covered bond yesterday (Monday) at a spread of 75bp over mid-swaps, the tight end of 75bp-80bp guidance. It was the first public mortgage-backed covered bond in the Swiss franc foreign market since September and the largest in over a year.

Pfandbriefzentrale der schweizerischen Kantonalbanken yesterday (Wednesday) issued the first Swiss Pfandbrief deal to be priced through mid-swaps this year.

Compagnie de Financement Foncier tapped a Sfr500m March 2013 deal for Sfr250m at plus 90bp via Basler Kantonalbank and Zürcher Kantonalbank on Wednesday, taking the issue to Sfr750m (Eu496m).

Pfandbriefbank schweizerischer Hypothekarinstitute priced two deals yesterday (Tuesday), with the exercise marking something of a return to business as usual after the institution’s recent financing arrangement for Switzerland’s two big banks.

Pfandbriefbank schweizerischer Hypothekarinstitute is preparing to execute a series of private placements. Instead of the usual investor base, the investors will be Swiss banks, mainly the cantonal banks, which will bid for them.

The Swiss government has approved an amendment to the regulations governing the country’s two Pfandbrief institutions that broadens the definition of eligible capital, thereby allowing them to issue more Pfandbriefe and boost liquidity in the interbank market.

Pfandbriefbank Schweizerischer Hypothekarinstitute increased a 2.75% October 2020 bond by Sfr281m on Friday, taking the total to Sfr650m, via Credit Suisse.