UK

Jozef Prokeš has joined BlackRock as a portfolio manager to help boost the investment management firm’s covered bond focus.

Anglo Irish Bank Corp Limited yesterday (Tuesday) launched a buyback offer aimed at all remaining outstanding external covered bonds launched under a UK programme, an operation that an official at the issuer described as a “clean-up exercise”.

The pace of benchmark covered bond supply could step up a gear this week, with Credit Suisse eyeing the middle of the week for the launch of its inaugural issue, a Dutch bank said to be close to coming to market and others deciding on next steps after having finished roadshows last week. But another issuer has put primary market plans on hold until next year.

The UK’s Financial Services Authority is delaying phasing in liquidity requirements for larger UK banks pending finalisation of rules being developed by the Basel Committee of Banking Supervisors. The move has been interpreted as a sign that the FSA could broaden the range of assets deemed eligible for liquidity buffers, towards which covered bonds currently do not count.

Moody’s today (Thursday) affirmed mortgage covered bonds issued by Northern Rock Asset Management at Aaa and removed them from review for possible downgrade, where they were placed in 2007.

In brief: Lloyds TSB Bank has become the third UK issuer to announce that it has amended a covered bond programme to allow for the issuance of registered covered bonds.

Euro benchmark covered bond supply slowed to a lone tap from Bayerische Landesbank today (Wednesday), although the pipeline of roadshows grew with the addition of a mandate from the UK’s Clydesdale Bank. Nordea Bank Finland yesterday priced a Eu2bn five year inaugural deal that appears to be the biggest Finnish benchmark covered bond ever.

Leeds Building Society yesterday (Tuesday) became the first UK issuer to publicly place a sterling residential mortgage covered bond, a move that an official at the issuer told The Cover he hopes will help generate momentum in the development of a domestic covered bond market.

Abbey National Treasury Services plans to issue registered covered bonds off a Eu25bn global covered bond programme, the issuer announced yesterday (Monday).

An April 2016 Caisse de Refinancement de l’Habitat issue was the only new benchmark covered bond live in the market this (Monday) morning, but with three other issuers lining up deals and two more borrowers announcing mandates the pipeline of forthcoming new issues and roadshows is well stocked.

Leeds Building Society is lining up to re-open the sterling covered bond market next week, while other inaugural deals are expected to lead a resumption of new benchmark issuance in euros.

Concrete plans for new issue projects next week appeared thin on the ground this (Friday) morning, but this could be a misleading indicator of forthcoming supply. At least three issuers are on the road next week, Spanish banks are emerging from blackout periods, and bankers said that French issuers are likely to be encouraged by a successful Compagnie de Financement Foncier Eu1bn 10 year transaction sold yesterday.