Nordea Bank Finland placed the first Nordic benchmark covered bond of 2013 on Tuesday, a Eu1.25bn seven year deal that came inside the issuer’s curve after being twice subscribed, with the tight pricing seen as justified by strong technicals and a robust market.

DLR Kredit wrapped up the 2012 year-end refinancing auction season for Denmark’s mortgage banks on Monday after Nykredit finished its sales last Thursday, with the issuers reporting that the auctions resulted in record low rates for borrowers.

Senior unsecured will be the cornerstone of bank funding in 2013, forecasts Vincent Hoarau, Head of FIs, Covered Bond & ABS Syndicate at Crédit Agricole CIB, with covered bond supply being partially led by the periphery and Nordic covered bonds being in a strong position.

Florian Eichert, Senior Covered Bond Analyst at Crédit Agricole CIB, examines the Norwegian FSA’s reasons for applying the brakes to covered bond issuance and considers how Norwegian issuers might react.

Norway’s SpareBank 1 Boligkreditt sold its second Yankee benchmark of the year yesterday (Wednesday), a $1bn (Eu781m/Nkr5.72bn) seven year that was executed against a deteriorating market backdrop but supported by strong lead interest.

Any shift to more unsecured funding prompted by possible restrictions on covered bond issuance by the Norwegian FSA could prove challenging, Moody’s cautioned on Monday, although it said such a move could benefit senior bondholders.

Sweden’s covered bond legal framework is above average, with strengths outweighing weaknesses, Moody’s said on Monday upon releasing the second in a special series of reports that assess and rank a common set of legal features in covered bond jurisdictions.

The Norwegian FSA may impose higher capital charges on issuers or restrict their issuance if it considers that they are tying up too much collateral in covered bonds, it said on Tuesday, calling for consideration to be given to limits on encumbrance resulting from covered bond issuance.

Alex Sönnerberg, Nordic DCM Origination, Crédit Agricole CIB, looks at how the rest of the year might play out for Swedish covered bond issuers in euros in light of factors such as basis swap moves and funding needs.

Norway’s Terra BoligKreditt announced a mandate for a new euro covered bond benchmark on Monday that, subject to market conditions, will follow a pan-European roadshow starting 22 October and could be the issuer’s first jumbo sized deal.