Sweden’s Skandiabanken plans to issue its first covered bond at the end of the month after having turned to the asset class as part of its plans to use the capital markets to diversify its funding sources and support the banks’ growth ambitions, an official told The Covered Bond Report.
Norway’s Sandnes Sparebank Boligkreditt has obtained a first rating of its covered bonds, AA- from Fitch, and an official at the issuer told Nordic FIs & Covered that the rating was sought to boost investor confidence in the programme.
DLR Kredit will align its sales to coincide with those of its peers when the next Danish auction season begins in November, with the issuer having attracted weaker interest when finishing off the latest round of sales this week, according to an official at DLR Kredit.
Norway’s Sparebanken Vest Boligkreditt priced its first benchmark euro covered bond in more than one-and-a-half years yesterday (Wednesday), a Eu500m no-grow five year deal that an official at the issuer said went “smoothly and swiftly” and bodes well for an envisaged increase in euro issuance.
Standard & Poor’s expects a shift in the Danish mortgage market towards longer term and CITA-linked loans, despite questions about their popularity in light of the costs associated with such mortgage products.
Aktia has roadshowed its new Aktia Bank plc covered bond programme and Crédit Agricole CIB senior covered bond analyst Florian Eichert explores the differences between this and previous Aktia Real Estate Mortgage Bank covered bonds.
Norway’s SpareBank 1 Boligkreditt was one of four issuers to launch benchmark euro covered bonds this week despite market conditions remaining tricky after the recent turn in sentiment, while Aktia Bank has embarked upon a roadshow ahead of a debut in its new guise.
Timo Ruotsalainen, managing director, Aktia Real Estate Mortgage Bank, gave Nordic FIs & Covered an update about the Finnish group’s switch to issuing directly out of Aktia Bank, and discussed other developments.
The International Monetary Fund has voiced its support for regulatory initiatives underway in Norway such as plans for higher risk weights for mortgages and closer scrutiny of covered bond issuance. Meanwhile, the Riksbank said Sweden’s banks need to be more resilient in the long run.
A US$1bn five year Swedbank covered bond launched at the end of March was prompted by positive feedback from US investors and the contrasting fortunes of recent euro and dollar Nordic benchmarks, said the issuer’s head of funding, but the mortgage lender could return to euros later this year.