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

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 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.

  • More core hype, this time Deutsche Hypo

    Deutsche Hypothekenbank, NordLB’s commercial real estate subsidiary, opened books on Monday for its first Pfandbrief of the year. Despite the time of year – this deal is the first German issuer to price a deal in the second half of July for over four years – leads attracted a heavily oversubscribed order book. Credit market conditions in the Euro area provided a constructive backdrop for execution, with Bunds stable and periphery markets recovering.

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.

Analyst research

  • Germany to strengthen Pfandbrief in 2015

    The first draft of the Pfandbrief Act 2015 offers some remarkable novelties, according to Commerzbank research, which said in its latest weekly publication that proposed changes should not cause any headaches — and may even improve transparency. Moody’s agreed saying that the draft proposals were credit positive.

Regulatory developments

  • ESMA consults on covered bond swap carve out

    The European Securities and Markets Authority (ESMA), has published a 110 page consultation paper that, among a number of topics, sets out the key factors that determine whether a covered bond swap should be excluded from central clearing. ESMA’s proposals mirror those set out by the European Banking Authority in April.

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