Skandinaviska Enskilda Banken (SEB) built a “rock solid” order book for a Eu1bn long seven year covered bond issue on Monday, according to an official at the Swedish issuer, who said the euro market continues to offer more attractive pricing terms and volume access than its domestic market.

Swedbank Hypotek reopened the sterling covered bond market after two months without benchmark supply on Wednesday, and although the FRN was priced 10bp wider than preceding deals an official at the issuer said the sterling market still offered attractive funding.

Eika Boligkreditt waited for a window amid heavy euro covered bond supply to sell its first euro benchmark of the year on Wednesday, pricing a Eu500m six year transaction with a relatively slim new issue premium after eight deals had hit the market in the first two days of the week.

Nordea Bank Finland reopened the market on Monday alongside Bank of Ireland as euro covered bond supply picked up to reach Eu6bn and seven deals this week on the back of improving appetite from investors.

The euro covered bond market was quiet this week, with only one benchmark issued, but bankers are optimistic that successful deals will be done next week after sentiment improved and spreads tightened and with a handful of issuers, including Eika Boligkreditt, having been on the road.

Swedish Covered Bond Corporation (SCBC) adjusted its pricing expectations in the face of a widening market when printing a Eu750m five year covered bond on Monday, according to an official at the issuer, who said the outcome was a strong result in difficult conditions.

The Swedish government is proposing to introduce a 2% minimum overcollateralisation requirement in legislation so the country’s covered bonds will meet the criteria necessary for exemption from central clearing obligations for OTC derivatives under the European Market Infrastructure Regulation (EMIR).

Swedbank exceeded expectations with a covered bond on Tuesday after SR-Boligkreditt sold a well-received debut on Monday, and the Nordic issues were identified as being among the strongest results during a busy week in which spreads widened and many deals struggled to find demand.

Danske Bank launched a Eu1bn (Dkr7.5bn) five year covered bond on Tuesday amid a wave of supply that the market proved more than able to absorb, and further benchmarks are due early next week.

The expected implementation in Norway of a resolution regime equivalent to the EU Bank Recovery & Resolution Directive (BRRD) will result in Norwegian covered bonds having less exposure to bank defaults and losses, Moody’s said last Friday (14 August), highlighting the rating benefits this has led to.