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Deal reviews

  • OP makes solid comeback with seven year

    OP Mortgage Bank made a successful return to the covered bond market on Friday, taking advantage of improved market conditions to print a €1bn seven year soft bullet.

  • Sparebank divides the market

    Sparebank 1 Boligkreditt adopted a cautious strategy when pricing its new seven year bond on Friday. The borrower offered a defensive high single digit new issue premium which bankers say has led to a repricing of its curve. Rival bankers said could have an affect on the Norwegian supply which is building in the pipeline. However, bankers on the deal said that the impact was minimal and that pricing was in line with other recent issues.

  • CredAg snaps into action to reopen covered bond market

    Crédit Agricole ended a month long euro covered bond drought on Thursday, leaping on improved market conditions to print a €1.25bn six year soft bullet with a minimal new issue concession. Bankers say the deal proves there is plenty of demand and will help to relieve pressure on the pipeline which has been building up this week.

People moves

Mandates & deal pipeline

Regulatory developments

  • New Norwegian issuer in the making

    Covered bond bankers could soon be dealing with a new issuer if plans to separate the Norwegian business of SkandiaBanken AB go ahead. Moody’s has assigned a provisional Aaa rating for the new entity which will be known as Skandiabanken Boligkreditt AS.

Analyst research

  • Canada’s covered bond cap must be raised

    The Canadian covered bond issuance cap of 4% of total bank assets is lower than most other countries and should be raised, according to Finn Poschmann at independent Canadian research institute, C.D. Howe.

In-depth analysis and interviews

  • Investor interview: core covered bonds get shunned

    One of Europe’s largest investors in covered bonds told The Cover on Thursday the large pricing differential between CBPP3 eligible and non-eligible covered bonds does not make fundamental sense. While his portfolio has grown this year, his firm will not properly return to the market until price dislocations, caused by the European Central Bank’s purchase programme, have been removed.

Rating news

  • S&P finalises multi-Cédulas rating action

    Standard and Poor’s has implemented its new rating method for Spanish multi-Cédulas programmes and announced a series of rating upgrades, downgrades and affirmations on the 32 deals it rates. The rating action should lower capital charges on some weaker deals.

  • Cover pool protects investors from second Depfa ratings withdrawal

    Depfa ACS Bank has only one rating remaining after Standard & Poor’s became the second agency to withdraw its covered bond rating this week. Analysts suggest this could result in forced selling of Depfa’s covered bonds if Moody’s follows suit, but they still believe that the bonds will be paid out in full.

Secondary market

  • ING looks to become latest to go soft

    ING Bank is looking to exchange over €17bn of its covered bonds to soft bullet format having announced a consent solicitation on Monday morning.

Market wrap

  • Euro covered bond supply lowest in a decade

    Euro benchmark covered bond year-to-date supply is the lowest in the last decade as a series of macro events, combined with banks’ increasing focus on bail-in, have kept activity to a minimum.

  • ECB: the only player in town

    Bankers hoped that a covered bond would emerge this week after Lower Saxony got a strong response for its deal on Tuesday. But with no hint of a euro benchmark on Wednesday, issuance hopes have been postponed until the week of August 24. The only flow is in the secondary market, and in the absence of sellers, euro system buying is causing spreads to move one way.


  • Euro covered bonds must be the currency of choice for Asia

    DBS managed to surprise the market last week when it picked dollars for the first covered bond issue out of Singapore. If the Lion City is serious about establishing a covered bond market, euros need to be the currency of choice.

  • Ambiguous secondary market obscures price discovery

    The secondary market has become irrelevant for pricing covered bonds. Spreads only reflect the level at which the eurosystem is willing to buy at, and not the rest of the market. It is the strongest signal yet of the disruption the European Central Bank's purchasing is causing.

RMBS primary news

  • CFF’s RMBS is better than its covered bonds

    Credit Foncier de France is out with its second RMBS of the year. CFHL-2 2015 may not come with the special regulatory treatment of the issuer’s covered bonds, but the deal offers a spread that looks particularly alluring for the risk. A major investor of covered bonds and securitizations said RMBS offer far better risk return than covered bonds, and chastised fellow investors for their lazy approach to assessing credit 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+ YTD to Mar 27  2015

Lead manager Amount
No of Issues Share %
1 Natixis 3.90 25 9.6
2 HSBC 2.93 15 7.2
3 Credit Agricole 2.79 17 6.8
4 BNP Paribas 2.79 12 6.8

 league table builder

All covered bonds YTD to Mar 27 2015

Lead manager Amount
No of Issues Share %
1 Natixis 4.50 28 6.4
2 Barclays 3.91 18 5.6
3 HSBC 3.84 19 5.5
4 RBC CM 3.80 10 5.4

 league table builder