The completion of the Liquidity Coverage Ratio (LCR) rules among various countries is proceeding, with the US releasing its final policy. On the euro front, another document was leaked, with most parameters remaining the same.
The Danish FSA (Finanstilsynet) set out proposals for a “Supervisory Diamond” for Denmark’s mortgage credit institutions on Thursday of last week (11 September) that aims to reinforce the Danish industry’s systemic stability, including moves away from one year ARMs and interest-only (IO) loans.
KLP Boligkreditt issued its first covered bond on 5 September, a Nkr500m (Eu60m) five year floating rate note, and an official at KLP Banken said that a next covered bond issue is already being worked on, with Nkr5bn expected by the end of 2015.
Danske Bank priced a Eu1bn (Dkr7.45bn) short five year covered bond at 2bp through mid-swaps on Wednesday, making it the first Nordic euro benchmark covered bond to have been priced through mid-swaps since the onset of the financial crisis.
Nordea achieved the lowest coupon on an Additional Tier 1 (AT1) with the first such issue from Sweden on Tuesday, a $1.5bn (Eu1.16bn, Skr10.7bn) transaction split into two tranches that included a $1bn perpetual non-call five tranche paying 5.5%.
The ECB buys covered bonds — again. It’s like changing your password on your computer. You leave the letters identical and increase the number at the end by one to keep it simple — in this case, to 3.
Sampo Oyj, parent company of the Finnish financial conglomerate, sold a Eu500m seven year bond issue on Tuesday, its first euro benchmark since February 2012, and met with strong demand.
Danske Bank sold its first sterling covered bond on Monday, a £500m (Dkr4.64bn, Eu624m) three year floating rate note that attracted £800m of demand despite coming at the same time as a £1.5bn Barclays Bank covered bond in the same format.
Nordea is set to launch the first Additional Tier 1 (AT1) instrument from Sweden next week, having embarked upon investor meetings for what will be a high, 8% trigger temporary write-down structure.
Ålandsbanken is aiming to increase the share of covered bonds in its funding profile, according to an official at the issuer, as it prepares to go on a roadshow linked to plans for a euro deal backed by its cover pool of Finnish residential mortgages.