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Mandates & deal pipeline

Market wrap

  • Primary bounce back expected

    Primary covered bond activity is likely to resume after a lacklustre August, up to eight deals are possible over the course of this month, said bankers.


  • Reciprocity matters

    Reciprocity creates risks that investors should give careful consideration to. Covered bond consultant Richard Kemmish, talks about these risks in reference to the new functionality of The Cover’s deal database, which maps the web of reciprocity.

Analyst research

  • Caixa’s Cédulas safe after Barclays acquisition

    Caixabank announced on Sunday that it had bought the Spanish operations of Barclays, subject to regulatory approval. The Cédulas cover pools are likely to be merged, but with the risk metrics of both being fairly similar, the rating impact should be neutral, said Credit Agricole analysts on Monday.

  • Pfandbrief market in ‘flux’ as banks scramble for buyers

    The Pfandbrief market is in a state of flux with as many as five mortgage lenders looking to be sold to new owners. But the fact Düsseldorfer Hypothekenbank has managed to find a buyer, despite Fitch’s assertion earlier this week that the German mortgage bank model was under severe pressure, shows that it’s possible for such institutions to attract interesting bids.

Secondary market

  • Covered bonds power through Ukraine crisis as liquidity fest looms

    European covered bonds extended their good run of solid trading with decent buying of the weakest names reported on Friday, in stark contrast to subordinated debt. Though traders and investors have been more unsettled of late following news of an escalation in military tensions in Ukraine, covered bonds have proved their mettle as investors factor in an expected surfeit of central bank liquidity and an even more favourable regulatory environment.

In-depth analysis and interviews

  • Sub-Euribor pricing moves closer as QE approaches

    European inflation, as well as expectations for inflation, are continuing to fall and the European Central Bank is likely to announce a quantitative easing (QE) programme in December, economists told The Cover on Thursday. With core yields set to tumble the allocation of real money demand to the periphery will accelerate and pricing of core covered bonds could become established at sub-Euribor levels, The Cover believes.

Deal reviews

  • NAB leverages LCR demand and shows the way

    National Australia Bank (NAB) looked set to tap a deal by double the minimum it had expected at less than half the spread the deal was originally offered at only three months ago. The increase comes after draft rules suggested covered bonds issued by banks outside the European Economic Area (EEA) will be eligible for inclusion in the liquidity coverage ratio, boding well for more supply from issuers outside Europe.

  • Priced deals database redevelopment: preview one

    At The Cover we are currently undertaking a significant technical overhaul of our priced deals database in order to give our subscribers the ability to view and manipulate our comprehensive proprietary deal data in exciting new ways.

Regulatory developments

  • BNS prepares for SEC registered deal

    Nearly a year after registering its covered bond programme with the US Securities and Exchange Commission, Canadian issuer Bank of Nova Scotia filed its prospectus. The move is a likely precursor to a dollar issue.

  • Brazil pushes for covered bonds

    Brazil's finance ministry has confirmed with The Cover that it will publish proposals for a covered bond legal framework next week. The proposals are a part of an overall package which aims to free up the flow of credit. Bankers are hopeful that the timescale to implementation will be quick, but warn that many frameworks have failed to attract the attention of foreign investors, ostensibly due to oversights over minor details.

  • CBIC transparency agenda gets wings

    The Covered Bond Investor Council has published a report which reviews progress in the field of transparency and makes recommendations. The report says there is still a clear need for data that is easily accessible, comparable, and which goes beyond the minimum requirements set by the ECBC Label.

Rating news

  • Fitch upgrades multi-Cédulas to drive rating rift wider

    Fitch upgraded 13 multi-Cédulas (MC) bonds on Friday saying their exclusion from the bank recovery and resolution directive (BRRD) and an improvement in credit quality was behind the decision. The upgrades have taken most deals into single-A territory, which should be a boost to the sector. However, the move serves to highlight the rating agencies' divergent opinions.

People moves

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