ANZ takes size in dollars as DNB lines up
The dollar market continued to sustain covered bonds on Wednesday as DNB mandated leads for a five year, a day after ANZ issued $1.25bn in the same tenor. The Australian bank got better execution than would have been achieved in euros and could have priced even tighter. The excellent result is testimony to the issuer’s long absence and to the depth of demand evident across the dollar fixed income market.
NordLB’s €500m 2019 tap is no barometer
NordLB reopened its four year public sector backed Pfandbrief on Wednesday in a move which locks in cheap funding. But the 10bp yield offers little buffer in a market characterised by rate volatility.
Abbey struggles in sterling as ANZ lines up in dollars
Torrid market conditions have kept issuers away from the euro benchmark market since April 29, forcing borrows to consider alternative currencies. On Tuesday, Abbey printed a £500m three year sterling deal, and even though the deal was not subscribed, bankers felt the sterling market was still open. Separately, ANZ has mandated leads for the second dollar benchmark from Australia this year.