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Deal reviews

  • SCBC prices tight with first soft bullet

    The Swedish Covered Bond Corporation (SBAB) was set to issue a €1bn deal at a historically tight level of 1bp over mid-swaps on a comfortably oversubscribed book on Tuesday. Although the issuer has been out of the market for three years and is considered a solid credit, the deal lacked some of the sparkle of issues seen earlier this month, possibly due to its soft bullet structure.

  • HSH trade builds on CBPP3 momentum

    HSH Nordbank opened books on Tuesday on an Aa3-rated €500m no-grow seven year mortgage-backed Pfandbrief, its second covered bond deal of 2014. Bankers said the level of oversubscription was further evidence of the divergence in popularity between covered bonds likely to be included in the ECB’s third covered bond purchase programme (CBPP3) and those which are likely to be outside, such as Tuesday’s other euro-denominated benchmark, from Swedish Covered Bond Corporation.

  • DNB shows CBPP3 price tiering

    DNB Boligkreditt returned to the euro covered bond market on Monday to issue its first deal of the year. The transaction looked set to price comfortably through mid-swaps, but it did not enjoy the same degree of price tension as recently issued and highly rated core covered bonds that are likely to be included in the European Central Bank’s third purchase programme (CBPP3).

In-depth analysis and interviews

  • Podcast: Andy Jobst (IMF) on covereds and capital

    Andy Jobst, a senior economist in the European department at the International Monetary Fund, speaks to The Cover in a podcast interview about the future of covered bonds in the European capital markets.

  • Covered bonds: surviving the supply drought

    Central banking intervention is set to continue shaping the debt capital markets, no more so than in covered bonds which are the target of the European Central Bank’s third purchase programme. This, along with the targeted long term refinancing operations (TLTRO) and negative deposit rates, will lead to lower supply and a further tightening in spreads. Investors and other key market players met in August to discuss the evolution of the market in a roundtable sponsored by Crédit Agricole CIB.

Opinion

  • The Cover Awards 2014 - pictures of winners and voting distribution

    The market has voted and the verdict is in. Leads, issuers and investors (with total AuM of €525bn) voted to select this year’s winners, which were announced at The Cover’s eighth annual awards dinner, held at the Palais Liechtenstein in Vienna on Thursday. Pictures of the winners and graphs showing the distribution of votes have now been added.

Mandates & deal pipeline

  • HSH and SCBC line up

    HSH Nordbank and the Swedish Covered Bond Corporation (SCBC) mandated leads for euro benchmarks that are likely to be launched on Tuesday.

Market wrap

  • Positive thinking: covered community gather in Vienna

    Ever the optimists, delegates at the Euromoney Covered Bond Congress in Vienna on Thursday attempted to cheer themselves up by highlighting opportunities in new jurisdictions such as Turkey and Singapore and possibly even deals backed by SME or infrastructure loan collateral.

Analyst research

  • SME “covered bonds” have a political mandate

    With 340 delegates, more people than ever attended the European Covered Bond Council’s Plenary meeting, held this year in Hotel Savoyen in Vienna. The welcome remark was delivered by Andy Jobst, a senior economist in the European department at the International Monetary Fund (IMF). He spoke about the role of covered bonds in expanding the European Central Bank’s balance sheet and the need for SME financing through securitizations, which regulated investors are not incentivised to buy.

Rating news

  • Spanish housing market stabilises, says Fitch

    The Spanish housing market has started to stabilise as the fall in the value of repossessions has steadied, and house prices have begun to rise for the first time in seven years, according to a report published by Fitch on Thursday.

Regulatory developments

  • Danish FSA proposals will lower mortgage risks

    The Danish Financial Supervisory Authority’s proposal to limit interest-only loans to 55% of total lending on mortgages with a loan to value (LTV) ratio of 75% or more should encourage mortgage borrowers to take longer duration loans and may help assuage rating agency concerns over refinancing risk, said Nykredit analysts on Friday.

People moves

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.

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
€(bn)
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
$(bn)
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