Coming soon! Shortlists for The Cover Awards 2016 will be unveiled on the 11th July, when voting will also begin.
The UK subsidiary of Santander issued a £500m three year floating rate deal on Friday in an exercise that suggested UK banks still have good access to wholesale funding. The deal comes as several banks line up with euro benchmarks next week, and amid growing signs that a further expansion of quantitative easing is on the way.
Several covered bond borrowers are eyeing the market for possible issuance next week from a range of eurozone and non-eurozone countries.
Fitch has revamped its covered bond rating rules to reflect differences between national resolution frameworks that could allow covered bond liabilities to be partly bailed-in, in some jurisdictions. Upgrades are likely in low investment grade countries, and downgrades in high investment grade countries.
The covered bond market reacted stoically to the surprising outcome of the UK’s referendum to leave the European Union with the primary market expected to restart in two weeks.
Capital Markets Union, one of the European Commission's most lauded initiatives, is likely to be one of the early casualties of the UK's decision to exit the European Union.
When the covered bond purchase programme (CBPP3) began in October 2014, valuations had become severely overstretched, and not long after the purchasing began, the market came under considerable pressure. Valuations are once again looking overstretched across the board but more so in the corporate sector where eurosystem buying has also only just begun.
The Cover invites market participants to submit 200 word pitches, or nominations, which will form the basis of shortlists that will be voted on in this year’s annual awards.
Bank investors of Norwegian and Swedish covered bonds will be obliged to hold more capital against their investments from next week. Though this is likely to have implications for a considerable number of noteholders, the absolute change is small and is unlikely to affect demand, said analysts at Danske Bank research.
In the devastating aftermath of Friday’s UK referendum result, UK covered bonds have been marked wider in contrast to peripheral national champions that have benefitted from some short covering interest at the long end.
PKO Bank Hipoteczny, Poland’s largest mortgage lender, has issued its second covered bond since the country’s updated legal framework came into force. The well oversubscribed, tightly priced and broadly distributed deal sets a strong prelude for an expected inaugural euro benchmark later this year.
The Danish covered bond issuer extended its curve and priced a larger deal well inside where its inaugural five year was issued in March and with a fair oversubscription ratio.
Belgian bank BNP Paribas Fortis has successfully registered its residential covered bond programme with the central bank, suggesting it could soon be ready to issue its first deal.
After recently issuing its debut RMBS, TSB Bank, the UK bank that was spun off from Lloyds, has filed vehicles suggesting it will turn to covered bonds.
Strong demand helped two Dutch issuers bring €500m RMBS deals this week, with Obvion opting to boost the deal size of its market-first green RMBS after building a bumper order book dominated by dedicated green investors.
Delta Lloyd Bank’s €500m Dutch RMBS deal was priced on Tuesday and benefitted from strong technical support as investors scramble for paper. The swapless bonds also feature more than usual credit enhancement as well as low risk NHG-guaranteed collateral that may soon become scarce.
Dr. Louis Hagen will succeed Jan Bettink as president of the Association of German Pfandbrief Banks (vdp).
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