OP mandates 10 year into weaker market
Nov 21st, 2014
OP Mortgage Bank is set to launch a 10 year benchmark imminently, having announced the mandate this (Thursday) afternoon for launch in the near future.
The deal will be the second from Finland since the launch of the European Central Bank’s third covered bond purchase programme, after Nordea Bank Finland on 29 October issued the first CBPP3-eligble benchmark after the programme’s launch. That was a Eu1bn 10 year that was priced at 1bp over mid-swaps.
Euro benchmark covered bond issuance this week — including deals for Belfius, Crédit Agricole Home Loan SFH and Helaba — continued last week’s weaker tone, with oversubscription levels falling far short of the typical three times subscription levels of CBPP3’s first two weeks. Pricing versus outstandings has also been less aggressive and the movement from IPTs to re-offer smaller, although the three aforementioned deals all set historic tight levels for their respective jurisdictions.
