Adjustable rate mortgage bonds being sold by Denmark’s mortgage banks during end-of-year auctions starting on Monday will include a greater share of three and five year bonds than ever, according to analysts, although this is only partly due to borrowers recently taking out loans with longer fixed interest periods.
Denmark’s Jyske Bank sold its first senior unsecured bond in the public markets since May 2011 on Tuesday, a Eu500m two-and-a-half year floating rate note that completes the Danish bank’s prefunding of redemptions due in 2013.
DNB raised Eu1bn of prefunding via an opportunistic 10 year euro benchmark covered bond yesterday (Wednesday) that it launched to capitalise on tight spreads and a positive market, according to an official at the issuer, who said that the bank’s deals will be smaller than in the past given declining wholesale funding needs.
Florian Eichert, Senior Covered Bond Analyst at Crédit Agricole CIB, examines the Norwegian FSA’s reasons for applying the brakes to covered bond issuance and considers how Norwegian issuers might react.
Danish FSA Deputy Director General Kristian Vie Madsen spoke to The Covered Bond Report’s Neil Day about the failure of Tønder Bank and the state of the Danish banking industry.
A Finnish Ministry of Finance working group has proposed allowing the country’s financial supervisory authority to cap LTV ratios, a move that an official at a Finnish issuer and analysts said would be positive for covered bond investors.
Norway’s SpareBank 1 Boligkreditt sold its second Yankee benchmark of the year yesterday (Wednesday), a $1bn (Eu781m/Nkr5.72bn) seven year that was executed against a deteriorating market backdrop but supported by strong lead interest.
SpareBank 1 SR Bank and SEB took advantage of strong market conditions and compressed spreads to tap the euro senior unsecured market this week, while Nordea Bank made the most of a good issuance opportunity in sterling.
Terra BoligKreditt launched its first jumbo covered bond on Tuesday, a Eu1bn five year deal that Terra’s CEO said involved 50%-60% more investors than in previous, smaller transactions.
Tamás Tóth, portfolio manager, Magyar Nemzeti Bank (Central Bank of Hungary), shares his thoughts with The Covered Bond Report on why Nordic covered bonds performed well this year and the potential for further tightening in local markets.