In-depth analysis and interviews

  • DBS Bank’s Chen talks about covered bonds in Singapore

    The Cover interviews Colin Chen, Managing Director and Head of Structured Debt Solutions, Treasury and Markets at DBS Bank about the borrower's forthcoming covered bond, how the Central Provident Fund’s priority claim was subordinated, and the Singaporean housing market.

Market wrap

Analyst research

  • H2 covered bond supply outlook dims

    After a strong start to the year, covered bond issuance has slipped back and is now €12bn below the amount seen in January to July last year. With investors biased to reduce covered bond exposures and Greece paralysing activity, there is a growing probability this year's supply wll fall below 2014's, rather than expand as many had predicted.


  • Covered bond issuers should be doing deals now

    As the technical backdrop looks stronger now than at any time this year, issuers should step up and execute funding plans before the Greece crisis gets any worse.

  • Vibrant Asian covered bond market may be years away

    After years of inactivity, Asia will finally get the first legislative covered bonds from South Korea’s Kookmin Bank and a second deal from Singapore is expected this year after DBS. But even though governments are keen on the product, a truly vibrant market may be years away.

  • The Cover Awards 2015 - shortlist nominations and categories

    The Cover’s annual awards for the covered bond market will be held at Casa Llotja de Mar in Barcelona on the evening of September 10. The awards celebrate the most important achievements in our market — as decided by the market.

Regulatory developments

  • CMU covered bond consultation coming soon

    The European Commission is expected to publish a consultation paper on covered bonds in the Capital Markets Union in the near future. The paper will not necessarily lead to material changes, unlike last year's EBA report.

  • NRAM meets tender quorum

    Northern Rock Asset Management’s (NRAM) tender offer for its remaining covered bonds is set to proceed after it announced on Tuesday that enough investors had registered interest.

Mandates & deal pipeline

  • Santander sets up French covered bond programme

    Santander has issued European covered bonds from Spain, Portugal and UK but could soon be about to issue Obligations Foncières from a new French programme. However, the sub benchmark sized deals are likely to be placed with the ECB said bankers.

  • DBS mandates first Singaporean covered bond

    DBS is set to commence marketing the first covered bond from Singapore later this month, and on Wednesday mandated its lead managers. Two other Singaporean banks are likely to follow, but at under than $20bn, the potential size of the market much lower than Korea’s.

  • Kookmin to open $111bn Korean covered bond mart

    Kookmin Bank has mandated leads for a roadshow to market the first covered bond issued under the newly established Korean legal framework. The bank, which has issued structured covered bonds in the past, is one of several that are expected to take advantage of the new law. But it had long been expected to be among the first to market, after issuing a consent solicitation in January this year.

Secondary market

  • Non CBBP3 eligible covered bonds soften further

    Covered bonds not eligible for the European Central Bank’s covered bond purchase programme (CBPP3) widened further on Thursday, while the rest of the market was largely unchanged on low volumes. Traders are axed to offer and reluctant to show bids.

Rating news

  • Fitch considers counterparty ratings

    Moody’s has been the first agency to recognise the need for a more defined waterfall of senior obligations within a bank’s capital structure and now Fitch is also considering this problem.

  • OBG and Pfandbrief get Moody’s lift but regulatory benefit limited

    Moody’s positive rating action on German and Italian covered bonds will help improve structural demand for selective programmes. However, with Fitch still rating many programmes at a lower level the full benefit will be muted.

  • Cédulas steady after upgrades, as Greece holds attention

    Spanish covered bond spreads were stable on Monday following the multi-notch rating upgrades Moody’s announced at the end of last week, as developments over Greece’s debt negotiations took centre stage. Though a few selective high beta names attracted real money interest, the overall market was heavy even as some government bonds were 20bp tighter or more.

Deal reviews

  • HSH just scrapes by

    A 10bp new issue premium was not enough for HSH Nordbank to attract a fully subscribed book for its €500m seven year Pfandbrief issued on Monday. Though it was cheap to the curve, the deal was much more expensive than other higher rated, shorter dated agency debt offered at the same time.

RMBS primary news

  • UCI reopens Spanish RMBS, ING offers quality with spread

    Unión de Créditos Inmobiliarios’ has issued the first Spanish RMBS since 2007. Meanwhile, ING made its first appearance in two years with an RMBS backed by better quality collateral than many covered bonds, and with a much fatter spread.

People moves

  • Loder leaves Barclays

    Bernd Loder has resigned from Barclays where he had worked as a director on its sovereign, supranational and agency syndicate desk in London.

Deals tracker

Priced Deals

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Deals pipeline

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Book runner

Covered bonds €500m+ YTD to Mar 27  2015

Lead manager Amount
No of Issues Share %
1 Natixis 3.90 25 9.6
2 HSBC 2.93 15 7.2
3 Credit Agricole 2.79 17 6.8
4 BNP Paribas 2.79 12 6.8

 league table builder

All covered bonds YTD to Mar 27 2015

Lead manager Amount
No of Issues Share %
1 Natixis 4.50 28 6.4
2 Barclays 3.91 18 5.6
3 HSBC 3.84 19 5.5
4 RBC CM 3.80 10 5.4

 league table builder