CMCIC takes size
Crédit Mutuel CIC took advantage of the strong reception enjoyed by BPCE earlier this week to issue a €1.5bn long six year, the seventh deal of this size seen so far this year. The transaction was comfortably oversubscribed and the order book built rapidly.
Strong demand for SEB
Swedish issuer SEB launched a new five year covered bond on Thursday, and despite coming only a day after Swedbank’s well subscribed bond, pulled in a large book for a €1.5bn deal.
Hypo Tirol shows hope for Austria
Hypo Tirol was never expected to be an easy trade given lingering concerns about Austria’s smaller banks and the aftermath of the Heta Asset Resolution debacle. So it was a relief when, on Thursday, the issuer managed to attract an oversubscribed and relatively well distributed order book for its €500m five year mortgage-backed covered bond.
ANZ funds cheaper in sterling than euros
Australia and New Zealand Banking Group took advantage of improved market conditions on Thursday to launch a new three year £500m floating rate covered bond. The funding was more competitive than what it could have achieved in the euro market.
Swedbank gets biggest book with tightest concession
Swedbank was set to issue a €1.25bn five year covered bond on Wednesday. The deal attracted more investors than any other covered bond this year, and a larger volume of orders. The new issue concession was small, but the deal’s success was driven by a yield nearly 0.5% more than OBLs
BPCE shows seven year is back in gear
BPCE issued a €1bn seven year mortgage-backed covered bond attracting an exceptional level of subscription from a broad range of real money investors. The transaction, along with earlier deals from AIB and CaixaBank, shows that the seven year tenor is now firmly back in vogue, offering the right trade-off between duration and yield.
Caixabank frontloads with its largest deal since 2011
Caixabank has become the fourth Spanish bank to tap the covered bond market this year with its largest Cédulas in five years. That four borrowers have launched similar sized deals of around €1.5bn so far this year suggests volatile market conditions are causing banks to frontload their funding.
Abbey attracts fair demand but some price sensitivity
Abbey National's €1bn five year issued Monday was comfortably oversubscribed but exhibited some price sensitivity.