UK

Abbey National Treasury Services priced a Eu1bn three year covered bond at 68bp over mid-swaps yesterday (Thursday) after having gone out with guidance mindful of the eye-catching spread at which Lloyds TSB had initially marketed a deal on Tuesday. An official at Lloyds TSB, meanwhile, told The Cover that judging the right starting level had been more complicated than usual.

Standard & Poor’s has affirmed Landesbank Hessen-Thüringen’s public sector covered bonds at AAA under its new rating methodology, and withdrawn its AAA, watch negative, rating of Standard Life Bank’s programme following a redemption of the issuer’s last outstanding series.

Abbey National Treasury Services has built a thrice oversubscribed order book for a Eu1bn three year issue that will be priced today (Thursday), a day after Lloyds TSB made its Regulated Covered Bond debut. Meanwhile, two more new issues have been mandated.

Lloyds TSB has priced a Eu1.5bn five year Regulated Covered Bond inside HBOS’s secondary curve, whose sway over the final re-offer level market participants had been debating given that the two issuers are part of the same group. Meanwhile, SpareBank 1 Boligkreditt issued a Eu1.25bn seven year deal.

Lloyds TSB has opened the books for an inaugural issue off its Regulated Covered Bond programme today (Tuesday). Meanwhile, SpareBank 1 Boligkreditt has announced plans to tap the market.

A Eu1bn 12 year Barclays Bank issue yesterday (Tuesday) met with strong demand from insurance companies and asset managers attracted to its 4.25% coupon, according to bankers at the leads, with pricing fortunately coming ahead of a fall in absolute yields.

Barclays Bank will today (Tuesday) price the first benchmark covered bond launched outside France and Germany in nearly a month after building an oversubscribed order book for a Eu1bn 12 year issue.

Standard & Poor’s has affirmed the covered bonds of Nationwide Building Society, Banques Populaires, and HSBC Bank at AAA, but downgraded those of Yorkshire Building Society to AA+. An upcoming redemption could lead to positive rating action for Yorkshire, however.

Dexia Municipal Agency has launched a 12 year obligations foncières issue, the longest dated benchmark covered bond of the year, with the order books clearing the Eu1bn mark earlier this (Wednesday) morning. Meanwhile, Lloyds TSB has completed a non-deal roadshow for its covered bond programme.

Caixa Geral de Depósitos is set to take Abbey’s place as the record ninth benchmark covered bond issuer this week, after the Portuguese but not the UK bank decided to brave the week’s widening market.

The benchmark covered bond market is today (Wednesday) set to break through the previous record for issuance in a week, with HSBC Covered Bonds and UBS having launched seven and three year deals, respectively, and Abbey understood to be whispering a five year issue.

Lloyds TSB Bank’s Eu15bn global covered bond programme has been added to the UK’s Regulated Covered Bond register.