Rating news

Analyst research

  • Austrian court ruling doesn’t change much

    The Austrian restructuring law that wiped out subordinated debt guaranteed by the state of Carinthia was overturned this week by the Austrian constitutional court (VfGH). However, it is not expected to change the positions of subordinated and senior creditors much. Covered bonds should remain secure, said research analysts at LBBW and Erste Bank.

  • Polish covered bond legal update will trigger growth

    Poland’s updated law contains measures that make the bonds much more efficient for issuers and considerably more attractive for investors say analysts at Barclays, who expect to see substantial growth in issuance.

Deal reviews

  • DBS Bank sets stage for Singaporean covered bonds

    DBS Bank priced its first covered bond and the first from Singapore on Wednesday. The $1bn three year, which has diversified the issuer’s investor base and lowered its cost of funding, was closely monitored by other issuers, one of which is likely emerge later this year.

Opinion

  • Ambiguous secondary market obscures price discovery

    The secondary market has become irrelevant for pricing covered bonds. Spreads only reflect the level at which the eurosystem is willing to buy at, and not the rest of the market. It is the strongest signal yet of the disruption the European Central Bank's purchasing is causing.

  • Covered bond awards: Lead manager awards still finely balanced

    More than 550 people have so far voted in The Cover’s 2015 covered bond awards, and with two weeks to go, there is still everything to fight for. Three banks are clearly in the running for Best Global House.

Mandates & deal pipeline

  • 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.

  • Covered bond primary still looks receptive

    New issue premiums have fallen slightly and with many transactions going on to perform well in the secondary market, bankers conclude that primary conditions are receptive. However, with August approaching, investors are more likely to be away from their desks and activity is bound to slow.

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.

Regulatory developments

  • NSFR does not help covered bonds

    The Net Stable Funding Ratio (NSFR) proposed by the Basel Committee on Banking Supervision (BCBS) may hamper the development of covered bonds and restrict long term financing, according to a paper published by the European Mortgage Federation (EMF) and European Covered Bond Council (ECBC) on Monday. This is due to the assumption that deposits are a more stable source funding and because unsecured funding is favoured over secured.

RMBS primary news

  • CFF’s RMBS is better than its covered bonds

    Credit Foncier de France is out with its second RMBS of the year. CFHL-2 2015 may not come with the special regulatory treatment of the issuer’s covered bonds, but the deal offers a spread that looks particularly alluring for the risk. A major investor of covered bonds and securitizations said RMBS offer far better risk return than covered bonds, and chastised fellow investors for their lazy approach to assessing credit risk.

Market wrap

Secondary market

  • NRAM on track to wipe covered bond slate clean

    After announcing its intention to repurchase all of its series 7 and series 8 2017 covered bonds, Northern Rock Asset Management (NRAM) has set the purchase price on the notes. It is hoping to reduce its liabilities and close its covered bond programme following a successful buyback in March.

People moves

  • UniCredit loads up with syndicate hire

    Bernd Loder, who left Barclays in May, has reappeared at UniCredit where he will start as a director in the investment grade and CEEMEA bond syndicate on August 3.

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
€(bn)
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
$(bn)
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