Société Générale, GlobalCapital & The Cover proudly present the Covered Bond Map 2014. View it here.


Regulatory developments

  • LCR implementation delay may help ABS

    Implementation of the liquidity coverage ratio (LCR) is set to be delayed by 10 months according to a draft document from European Commission (EC) leaked last week. The leaked draft contained good news for covered bonds, but did not improve the position of ABS, which the European Central Bank and Bank of England will want to see changed, said bankers on Monday.

Analyst research

  • Portugal upgrade bodes well for Totta and others

    Moody’s upgrade of Portugal last Friday bodes well for the prospective upgrade of the covered bonds issued by Santander Totta, said analysts on Monday. It should also help to limit covered bond contagion spreading to other lenders, in the event of further negative headlines emerging related to the troubled Portuguese lender, Banco Espirito Santo (BES).

  • Risk on, German investors say

    Appetite for risk in the covered bond market has risen markedly over the last two years, according to a survey of the 180 German investors who attended NordLB’s global capital markets conference on July 17.

In-depth analysis and interviews

  • PIMCO in Portugal while sell-side analysts tout opportunity

    Pimco, after staying clear of Portuguese bank or sovereign debt for five years — was in Lisbon recently to investigate opportunities in the troubled peripheral jurisdiction generated by the ongoing Banco Espirito Santo (BES) headlines. The meetings came as several sell-side research analysts tipped Portuguese covered bonds as a good relative value opportunity versus periphery peers.

Rating news

  • 24 European covered bonds capped by LCC, Moody’s say

    The rating of 24 covered bond programmes from across EMEA could be up to four notches higher without the constraint of sub triple-A local currency country risk ceiling (LCC), analysis from Moody’s revealed on Tuesday. Within a given jurisdiction, the risk ceiling defines the highest rating achievable for an issuer’s print in the local currency.

Deal reviews

  • Inaugural BPS offers generous pick up

    Banca Popolare di Sondrio surprised the market on Tuesday, announcing and pricing its inaugural Obbligazioni Bancarie Garantite via sole lead BNP Paribas. The newcomer which is a slightly larger institution than its more established covered bond peer, Credito Emiliano, offered a deal with a substantial spread pick up enticing a broad swathe of investors.

  • Inaugural TD largest euro deal of 2014

    Toronto Dominion’s first legally compliant covered bond stormed the market on Monday morning, raising €1.75bn – €750m more than any of the other five Canadian euro benchmarks that have been launched this year.

People moves

Secondary market

  • Bank bid boosts belly

    The five year area of the covered bond curve saw solid demand in the secondary market this week, especially for bonds originated from outside the European Economic Area (EEA). The rally was driven by speculation that a recent proposed change to the liquidity coverage ratio (LCR), which would allow banks to count such bonds in their liquidity buffers, could be approved.

Market wrap

  • Tepid reception greets MPS as covered convergence stalls

    Three issuers launched covered bonds this week with varying results, which suggested that the converging trend between core and peripheral Europe has stalled. Banca Monte dei Paschi di Siena (MPS) struggled to attract anything like the demand seen in its previous covered bond as Portuguese woes outweighed the programme’s rating upgrade into investment grade territory.

Mandates & deal pipeline

  • Deutsche Hypo mandates

    Deutsche Hypo has mandated joint leads for a €500m five year mortgage Pfandbrief to be launched in the near future.

RMBS primary news

  • Obvion and Santander UK draw RMBS demand

    Two of the strongest RMBS platforms in the European securitization market hit the market this week, and showed investors are still eager to grab the highest quality paper.

  • Veneto and Sella bolster Italian RMBS supply

    Veneto Banca has issued its second RMBS in as many months, while Banca Sella was set to price its first RMBS deal since 2005 on Friday. The short dated single A rated deals, that offered a compelling triple digit spread, will give covered bonds a run for their money for investors that understand the risk.

Deals tracker

Priced Deals

Search the full priced deals table here

Deals pipeline

Search the full deal pipeline table here

Book runner

Covered bonds €500m+ to May 29  2014

Lead manager Amount
No of Issues Share %
1 BNP Paribas 4.51 20 8.5
2 UniCredit 4.38 29 8.2
3 Natixis 4.09 21 7.7
4 Commerzbank 3.38 21 6.3

 league table builder

All covered bonds to May 29 2014

Lead manager Amount
No of Issues Share %
1 UnCredit 7.60 51 7.9
2 Natixis 7.36 27 7.7
3 BNP Paribas 6.58 23 6.9
4 UBS 5.12 31 5.3

 league table builder