SKK1.25bn tranche ‘cherry on cake’ of debut Jyske AT1
A debut, dual tranche DKK1.5bn equivalent AT1 for Jyske Bank on 7 September was more than twice oversubscribed, and comprised the first benchmark Swedish krona AT1 from a non-domestic name, with a Jyske official deeming the result a testament to years of work in the Swedish market.
From Crédit Agricole CIB
As always around this time of year, the focus of investors and issuers – as well as analysts – starts to shift towards their expectations for the coming year, writes Florian Eichert, head of covered bond and SSA research at Crédit Agricole CIB.
In this article Florian Eichert, senior covered bond analyst at Crédit Agricole CIB, tries to assess at what point we will have a more normal covered bond market again that does not just rely on what the Eurosystem does or does not do.
We know we are not even half way through the CBPP3, so talking about the impact an exit in September next year might have could seem a little premature, to say the least, write Crédit Agricole CIB covered bond and SSA analysts Florian Eichert and Stephan Dorner.
In the latest edition of their Covered bond Sentiment Index (CSI), Crédit Agricole CIB analysts Florian Eichert and Stephan Dorner found investor sentiment at an all-time low – although the issuer index is close to an all-time high.
Denmark
SKK1.25bn tranche ‘cherry on cake’ of debut Jyske AT1 A debut, dual tranche DKK1.5bn equivalent AT1 for Jyske Bank on 7 September was more than twice oversubscribed, and comprised the first benchmark Swedish krona AT1 from a non-domestic name, with a Jyske official deeming the result a testament to years of work in the Swedish market.
Market
DNB Eu1.5bn 10s biggest since 2014 in ‘civilised’ covered bond market DNB Boligkreditt attracted Eu2bn of orders to a Eu1.5bn 10 year covered bond today (Tuesday) that is the largest euro benchmark in the maturity since 2014 and comes after a slew of long-dated supply.
Ratings
Storebrand late payment ‘technical’, credit quality ‘unaffected’ Storebrand Boligkreditt repaid a maturing Norwegian krone covered bond two days late last week, according to Moody’s, which said that the payment delay was due to a technical error, is not considered a default, and has not affected the credit quality of the programme.
Sweden
Risks highlighted in DBRS’s first Swedish analysis ‘not uncommon’ DBRS published a first Legal & Structuring Framework (LSF) assessment of Swedish covered bonds yesterday (Thursday), highlighting some shortfalls but noting these are “not uncommon” and have mitigating factors, while also citing covered bonds’ connectedness to the economy as a strength.
Finland
New LTV caps positive for Finnish covered bonds, says Moody’s New caps on LTV ratios that took effect in Finland last week are credit positive for Finnish covered bonds, according to Moody’s, reducing credit risk at the whole-loan level and adding to protections in the Finnish covered bond framework.
Industry Moves
ECBC to tackle RWA floors, Realkreditrådet calls for ‘disconnect’ from Basel The European Covered Bond Council will in the coming months focus on addressing the impact of risk-weight floors for mortgages being proposed by the Basel Committee, which representatives of the Danish FSA and issuers questioned at an ECBC plenary yesterday (Thursday).
Norway
Duration bid opens 10s to SpaBol, misreport unheeded SpareBank 1 Boligkreditt sold its first 10 year euro benchmark on Tuesday, with the possibility of offering a positive yield at the long end a factor, according to the issuer’s COO, who said erroneous reports on its substitute assets did not affect the Eu1bn deal’s successful outcome.