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.
Sparebanken Vest Boligkreditt on Wednesday sold the first Norwegian euro benchmark covered bond of the year, a Eu500m seven year that achieved tighter pricing than some market participants had expected, and an official at the Norwegian issuer said it may become a more frequent visitor to euros.
Länsförsäkringar Hypotek sold a Eu500m (Skr4.64bn) seven year covered bond at the tight end of its pricing expectations yesterday (Thursday), according to an official at the issuer, who said that it timed its deal to avoid competing supply from the Nordics and elsewhere.
A move by Finnish banks to allow households amortisation-free periods on their mortgages free of charge is a short term boon for Finland’s economy, but could pose a long term risk to the banking system, Moody’s warned on Monday.
Stadshypotek sold a $1bn (Skr8.70bn, Eu931m) five year 144A covered bond on Wednesday of last week (2 April) and bankers suggested that although the deal had not achieved the same level of arbitrage as some recent transactions, European issuers could still see the dollar market as attractive.
Santander Consumer Bank Nordic on Wednesday attracted Eu2bn of demand for a Eu750m (Nkr6.50bn) three year senior unsecured benchmark, allowing the issuer to price at the tight end of guidance while enlarging the deal to its maximum targeted size, according to an official at the issuer.
Swedbank on Wednesday sold a well-received £300m (Eu414m, Skr3.87bn) four year senior unsecured deal, making a quick return to the sterling market after having sold a £500m three year covered bond on 25 March, with an official at the issuer noting the diversification on offer and the attractive funding levels thanks to favourable currency swaps.
The Central Bank of Savings Banks Finland (Sp Central Bank) yesterday (Thursday) mandated an inaugural, senior unsecured bond and here Kai Brander, head of treasury, Sp Central Bank discusses the project.
The Central Bank of Savings Banks Finland is planning an inaugural, senior unsecured bond in a move that will mark the reopening of wholesale funding for the Finnish Savings Banks Group.