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.
SBAB launched its first benchmark euro senior unsecured floating rate note since January 2012 on Wednesday, a Eu750m (Skr6.94bn) three year issue that the issuer’s head of investor relations said is likely to be followed by a euro benchmark covered bond by the end of the third quarter.
Moody’s upgraded the rating of covered bonds issued by Aktia Real Estate Mortgage Bank (REMB) from Aa2 to Aaa yesterday (Thursday), following the introduction of Counterparty Risk (CR) assessments to its methodology.
The Swedish FSA (Finansinspektionen, or FI) on Tuesday proposed amending regulations on the countercyclical capital buffer (CCB) to raise it from 1.0% to 1.5%.
Danske Bank and SBAB took advantage of last week’s reopening of the euro FIG market to issue Eu750m senior unsecured fixed and floating rate benchmarks, respectively, this week, as the better tone was maintained in spite of ongoing concerns about Greece.
Finland’s Ålandsbanken launched its largest ever covered bond on Tuesday, a Eu250m no-grow five year issue that the issuer’s head of group treasury said represented successful pricing and diversification, even if it had to pay up for the sub-benchmark size.
Realkredit Danmark (RD) sold a Dkr42.4bn (Eu5.68bn) 18 month floating rate note – the largest ever FRN in the Danish covered bond market – in auctions from Monday to yesterday (Thursday), with the size reflecting changes in the type of mortgage being taken out and the maturity a debate over negative coupons in Denmark.
DNB Boligkreditt attracted strong US interest with a $1.25bn (Eu1.12bn, Nkr9.44bn) five year benchmark covered bond on Wednesday, and yesterday (Thursday) achieved tight pricing with a Skr4bn (Nkr3.61bn, Eu430m) subordinated issue that a banker said he believes to be the largest ever Tier 2 in the krona market.
Swedbank reopened the euro FIG market yesterday (Thursday) with a Eu750m seven year senior unsecured fixed rate issue that attracted Eu1.9bn of demand and was priced at the tight end of guidance, and bankers said other issuers would be encouraged to come to market.
Standard & Poor’s on Tuesday placed Nykredit and DLR Kredit on CreditWatch Negative but affirmed its ratings of fellow Danish banks Jyske, Danske and Nordea Bank Danmark, after completing a review relating to the potential withdrawal of government support for the banking sector under the Bank Recovery & Resolution Directive.