Ane Arnth Jensen, managing director of the Association of Danish Mortgage Banks (Realkreditrådet), spoke to Nordic FIs & Covered about regulatory issues that could impact Denmark’s system.
Standard & Poor’s expects a shift in the Danish mortgage market towards longer term and CITA-linked loans, despite questions about their popularity in light of the costs associated with such mortgage products.
Svenska Handelsbanken rounded off a Samurai issuance spree from Nordic and other European banks today (Thursday), pricing a ¥50.5bn (Eu396m, Skr3.47bn) four tranche transaction inside Swedish peer Nordea.
Moody’s downgraded Länsförsäkringar Bank’s debt and deposit ratings from A2 to A3, on stable outlook, yesterday (Wednesday), citing relatively light capitalisation at the bank level, high growth rates in recent years, and market funding reliance.
“Squeeze-time” is probably the “it” word of the covered bond world so far in 2013. Issuance has remained subdued, with overall euro benchmark covered bond volumes having just moved above EUR50bn, while redemption volumes have been significantly higher, coming in at EUR85bn in the first five months of the year.
Roughly 50% of investors holding government guaranteed bonds targeted by Swedbank for repurchase participated in a tender offer that closed on Monday, a take-up rate that an official at the issuer said made for a worthwhile exercise.
Aktia Bank sold a Eu500m no-grow five year covered bond on Monday, successfully inaugurating a new programme the Finnish group has set up to take over its covered bond funding from Aktia Real Estate Mortgage Bank.
Pohjola Bank priced its debut Samurai issue on Wednesday, a ¥30bn (Eu235m) three tranche deal, which the group’s head of funding said marked the beginning of a long term presence that made the work on setting up the programme worthwhile.
Aktia has roadshowed its new Aktia Bank plc covered bond programme and Crédit Agricole CIB senior covered bond analyst Florian Eichert explores the differences between this and previous Aktia Real Estate Mortgage Bank covered bonds.
In euros more than a week has passed without any new benchmark covered bond supply, and more than two since the last senior unsecured deal, as fears that the end of quantitative easing is nigh contributed to a sell-off across markets.