UniCredit prices CPT flat to soft bullet
UniCredit issued its inaugural conditional pass through covered bond on Thursday and despite the new structure, the final spread was flat to where it would have priced a deal from its soft bullet programme. The head of group strategic funding emphasised the deal’s rating stability as the key attribute and not its collateral efficiency.
LBBW issues rare Eurodollar Pfandbrief
LBBW successfully issued a $500m three year Reg S Pfandbrief on Thursday. As the deal funded dollar assets, no swap costs were involved and the overall funding was marginally cheaper for LBBW than the level it could have achieved in euros. But with Pfandbrief yields negative in this tenor, euro issuance would have been impractical.
Helaba and Danske enjoy solid receptions
Landesbank Hessen-Thüringen Girozentrale (Helaba) issued a €1bn Pfandbrief on Wednesday at a final spread that was deeply through mid-swaps but got a strong response as it was able to offer a positive spread to Germany, where yields are negative. At the same time, Danske Bank issued this week’s only euro benchmark. As it was not eligible for the covered bond purchase programme it offered a quite attractive spread.
BPIM and Dexia attract multiple oversubscriptions
The primary market sprang back to life on Tuesday, as covered bonds from lower rated issuers in Germany and Italy attracted books that were many times covered. The successful outcomes illustrated that the market was not concerned about the outcome of negotiations on the extension of the Greek debt bailout or the prospective timing of the first US rate hike.