SEB reopens AT1 with $1.1bn debut on back of $5.3bn book

Nov 14th, 2014

SEB reopened the AT1 market on Thursday of last week (6 November), pricing a debut $1.1bn (Eu883m, Skr8.17bn) perpetual non-call 5.5 issue with a coupon of 5.75% in the first European bank AT1 supply since a deal for fellow Swede Nordea on 17 September.

Stadshypotek Eu1.25bn 7s face mixed CBPP3 dynamics

Nov 6th, 2014

Sweden’s Stadshypotek set a new post-crisis tight for non-Eurozone seven year covered bonds with a Eu1.25bn issue at 2bp through mid-swaps on Monday, and an official at the issuer said the result was encouraging, even if technicals – in the shape of CBPP3 – are in his eyes outweighing credit quality in relative pricing.

SEB debut AT1 to test market, with scarcity, quality seen boding well

Nov 6th, 2014

Skandinaviska Enskilda Banken (SEB) is expected to launch its first Additional Tier 1 (AT1) issue shortly, in the US dollar market, after having begun a roadshow on Monday.

S&P notes Swedish moves to reduce ALMM risk

Oct 24th, 2014
Riksbank image

Standard & Poor’s said on Tuesday that a Swedish Bankers’ Association proposal to suggest a reduction in the required level of amortisation to a 50% LTV ratio could help reduce asset-liability mismatch (ALMM) risk in covered bond programmes, but highlighted that issuers have already reduced this since 2008 by extending the duration of their funding.

Swedish amortisation plan ‘beneficial’, could head off new regs

Oct 17th, 2014
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Amortisation of new mortgage loans down to 50% of a property’s value in line with a Swedish Bankers’ Association recommendation on Tuesday of last week (7 October) would be beneficial, according to Moody’s, while an analyst suggested it could head off further binding measures from Sweden’s authorities.

Moody’s highlights lower fire-sale risk from SCBC soft bullet

Oct 10th, 2014

Moody’s noted that the soft bullet mechanism used by SCBC for the first time on a Eu1bn covered bond launched on Tuesday of last week (30 September) reduces fire-sale risk associated with covered bonds in the event of default, which is the major driver of cover pool losses.

SCBC back after deposit drive, plans yearly euro benchmarks

Oct 2nd, 2014

SCBC sold its first euro benchmark in three and a half years on Tuesday, a Eu1bn (Skr9.1bn) seven year that is understood to be the first soft bullet covered bond out of Sweden, and an official at the issuer said it will now be returning to the euro-denominated market on a yearly basis.

Nordea sets AT1 coupon low in $1.5bn Swedish landmark

Sep 19th, 2014

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%.

Nordea eagerly awaited after announcing first Swedish AT1

Sep 12th, 2014

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.

Strong response as Nordea Norwegian arm makes sterling debut

Sep 4th, 2014

Nordea Eiendomskreditt made its sterling covered bond debut today (Thursday) with a £500m (Eu627m, Nkr5.11bn) three year FRN that was nearly twice subscribed and said to be the tightest deal in the currency so far, also coming inside theoretical euro new issue levels.