FIG supply fell sharply in February and March after January’s deluge of new issues. Euro benchmark volumes in February and March amounted to just Eu10.3bn and Eu18.1bn, respectively, while supply in January alone had reached Eu55.2bn.

The euro primary market has over the last two weeks been subdued, with only five public benchmarks being priced in covered bonds as well as the senior unsecured space. We note a number of reasons for this relative drought in what is usually a busy quarter for the debt capital markets.

Asset encumbrance is one of those topics that everyone talks about but where discussions hardly ever go beyond very shallow, general statements.

One of the most pressing issues regarding banking regulation and covered bonds has been the treatment of covered bonds for the Liquidity Coverage Ratio.

Risk aversion is back and, following a very strong performance overall since last July, banks have been the hardest hit, especially in Italy and the periphery.

Handelsbanken reported a pre-tax profit of SEK4.1bn (Q4 2011: SEK4.1bn), which was 4% below consensus expectations, driven by higher one-off costs in a modest housekeeping drive similar to SEB’s announcement two weeks ago.

Mats Anderson, Cheuvreux bank equity analyst, gives his take on a first round of fourth quarter and full year 2012 Nordic bank results, and says that Swedbank has fired the starting shot for a Nordic bank capital distribution “bonanza”.

Florian Eichert, senior covered bond analyst, Crédit Agricole CIB, explores how Norwegian regulatory initiatives could affect Norwegian covered bonds and affect supply dynamics in 2013. 

As the year draws to a close, we at The Covered Bond Report and Crédit Agricole CIB would like to take the opportunity to thank you, our readers, for your interest in Nordic Financial Institutions & Covered Bonds.

The past year has offered both issuers and investors quite a few surprises, writes Robin Bagger-Sjöbäck, Nordic FIG DCM Origination, Crédit Agricole CIB.