The Netherlands

Secondary trading has paused for breath lately, but there are still good pockets of liquidity and interest – specifically for French, UK and to a lesser extent Dutch and Scandinavian deals. The primary market could be due another slow week though a French deal is highly likely, with Société Générale tipped as a probable candidate. UK issuers are looking at the dollar market but there is speculation that one is looking at sterling.

Secondary trading has picked up pace in light of limited primary issuance. An attractive rates environment has ensured continued demand for long dated French paper, while selling has increased in peripheral covered bonds now flat to the government curve.

Taking advantage of scare supply at the long end and a rising yield environment, ABN Amro raised Eu2bn of 10-year funding on Tuesday morning. The transaction was priced well inside guidance on a comfortably oversubscribed book, in which there was little price sensitivity.

Deutsche Hypothekenbank Hannover is set to price a public sector backed Pfandbrief this afternoon, following NIBC’s first public deal which was priced at the end of last week. The book build on both northern European deals has been seamless, despite further volatility and credit rating concerns around peripheral Europe.

The Netherlands NIBC Bank brought primary market activity to a close this week, launching an inaugural Eu500m three-year deal on Friday via leads LBBW, Natixis, and RBS, which priced the new issue at 105bp over mid swaps.

Though primary market activity remains muted, the pipeline continues to grow despite headline risk. A string of mandates for US dollar deals are expected, along with a sterling transaction from Barclays.

The books on ING Bank’s five year covered bond closed at 11:45am UK time. Being the only deal in the market gave it exclusive status and it drew Eu2.25bn of orders from over 100 accounts.

Guidance on ABN Amro’s Dolphin 2011-1 Dutch RMBS is 135bp-140bp over three month Euribor for the five year senior notes — 10bp inside the guidance on the last Dutch RMBS, Delta Lloyd’s Arena 2011, and inside secondary market bid prices. ABN Amro, JP Morgan, Rabobank and Royal Bank of Scotland are the lead managers.

Delta Lloyd’s Arena 2011-1, the first European ABS deal of the year, priced at the tight end of guidance on Friday, signalling that the market is ready for more Dutch prime.

Books on Dutch mortgage lender Delta Lloyd’s Arena 2011-1 RMBS will close on Friday, according to syndicate bankers managing the sale. Joint leads Rabobank and Royal Bank of Scotland are still waiting for a number of accounts to come in but books are building for the publicly sold senior tranches.

Guidance on Arena 2011-1, the first European RMBS of 2011, will be 105bp-110bp on the A1 notes and 145bp-150bp on the A2s, but deal progress has been slow, as harsher regulatory disclosure requirements start to bite.

Rabobank and Royal Bank of Scotland will take Delta Lloyd’s Arena 2011-1 RMBS on the road this week, in what could be the first European RMBS of 2011.