UK

In brief: The Cover has learnt that Chelsea Building Society is the latest UK financial institution planning to turn to covered bonds for financing.

In brief: Coventry Building Society has launched the first covered bond off its new programme. Barclays Capital and BNP Paribas are arrangers of the issuer’s Eu7bn covered bond programme.

In brief: Allen Rad is leaving Dresdner Kleinwort for RBS.

Fitch today (Tuesday) downgraded the long term rating of Yorkshire Building Society (YBS) from A+ to A in a series of rating actions on UK building societies. The building society’s triple-A covered bond rating has not been affected.

With more and more UK issuers encouraged to register covered bond programmes by the UK’s new legislative environment and the Bank of England’s Special Liquidity Scheme, The Cover spoke to The Co-operative Bank about its issuance plans and its thoughts on the new framework.

The US authorities’ intervention to stop Fannie Mae and Freddie Mac from failing and other positive news today (Monday) has been welcomed, but appears unlikely to be sufficient to encourage any jumbo covered bond supply this week. It could, however, let investors sleep easier in their hammocks.

Moody’s yesterday (Thursday) said that it is still reviewing Bradford & Bingley’s covered bond rating for possible downgrade, following its cut in B&B’s senior rating from A3 to Baa1 last Friday.

In brief: Standard Life Bank has launched what is believed to be its first covered bond, a £1.5bn (Eu1.87bn) three year floating rate note. The Cover understands that the issue is the first off a Eu5bn covered bond programme.

While Moody’s is expected to cut Bradford & Bingley’s covered bond ratings, its peers look likely to be less severe. On Friday S&P said that new external factors supported its view of the bank’s senior rating, while B&B has already taken action to satisfy Fitch’s triple-A view of its covered bonds.

Deutsche Bank may have come first in the all benchmarks ranking for the first half of 2008, but it was by no means the strongest across all markets. Here The Cover reveals the top banks in each of the biggest sectors and examines where the leading banks’ weaknesses lie.

The question is not if, but how severely Moody's will cut the ratings of Bradford & Bingley's covered bonds following the rating agency's downgrade of B&B's long term rating from A3 to Baa1 early this morning, said analysts today (Friday).

Fitch and Standard & Poor’s have released reports on their triple-A ratings of Barclays Bank’s covered bond programme, offering details on its size and how much the structure and collateral has in common with other UK programmes.