Switzerland

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.

Pfandbriefzentrale der schweizerischen Kantonalbanken issued Sfr484m (Eu319.4m) of paper yesterday (Wednesday) at levels bankers said harked back to the good old days.

UBS has set up a covered bond programme to enable it to tap "an attractive medium to long term source of financing", the Swiss bank announced today (Tuesday).

Compagnie de Financement Foncier launched the first publicly placed 10 year covered bond in Swiss francs for a non-domestic issuer in more than a year on Thursday.

Pfandbriefbank schweizerischer Hypothekarinstitute raised Sfr1.346bn yesterday (Tuesday), the most it has ever raised in a single day, tapping three bonds via Credit Suisse.

Pfandbriefbank schweizerischer Hypothekarinstitute has executed the fourth private placement brokered by the Swiss National Bank to help Credit Suisse and UBS raise funding.

Pfandbriefbank schweizerischer Hypothekarinstitute tapped an April 2013 bond for Sfr216m this (Monday) morning via Credit Suisse. It came at 3.5bp through mid-swaps, 1.5bp inside the bookbuilding level.

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.