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  • Weekly EUR-denominated primary covered bond supply has dropped to zero for the fifth time this year, following last week's bumper EUR4bn volume from five tranches. However, the sector remained active with one new addition to the EUR pipeline and issuance away from the single-currency.
  • Euro issuance was side-lined this week as market participants attended the ECBC Plenary Meeting & Covered Bond Congress on Thursday, but is expected to pick up in the coming weeks. PKO Bank Hipoteczny is one likely issuer, having mandated its third euro covered bond this week.
  • The last zero issuance week was w/e 11 August, which itself followed two weeks of no new euro paper. See image 5 below.
  • Year-to-date EUR supply remains EUR89.55bn versus EUR107.8bn for the same period in 2016. Weekly issuance comparisons are illustrated in image 6 below.
  • PKO Bank Hipoteczny on Monday announced plans for its third euro covered line having mandated HSBC, PKO Bank Polski, LBBW and UBS to arrange marketing from 13-18 September. The bonds are expected to have an intermediate maturity and to be rated Aa3 (at country ceiling level).
  • PKO brought the first Polish international EUR covered bond back in October 2016 via an inaugural EUR500m Jun-2022 which priced at m/s +18bp and has since followed up with a EUR500m Jan-2023 deal at m/s +27bp earlier this year in March.
  • Away from the single-currency, Pfandbriefbank der Schweizerischen Hypo tapped its 0.125% Sep-2028 line by CHF135m on Monday, while Realkredit Danmark launched a ~SEK4.24bn refinancing of its Oct-2021 SDRO on the same day. Thursday's supply came from Canada Housing Trust No. 1's CAD5.25bn reopening of its 2.4% Dec-2022 Canada Mortgage Bond while Sparbanken Skane announced a roadshow for its inaugural five-year SEK FRN benchmark covered bond, to be launched off a newly-established SEK30bn Covered Bond Programme.
  • The ECB settled EUR228.952bn under the CBPP3 as of the week ending 8 September, with the latest data representing a EUR929m week-on-week increase and a EUR186m implied daily purchasing rate.


Year-to-date EUR Covered Bond volumes by jurisdiction:



Source: Informa Global Markets


Year-to-date EUR Covered Bond volumes by maturity:



Source: Informa Global Markets


Total EUR Covered Bond volume by week:




Source: Informa Global Markets



Year-to-date League Table (EUR-denominated covered bonds):

Rank Lead (Change from previous week) Amount (EUR) # of Deals Share (%)
1 Commerzbank (unch) 6.61bn 42 6.79%
2 LBBW (unch) 6.17bn 31 6.33%
3 Credit Agricole CIB (unch) 5.98bn 31 6.14%
4 BNP Paribas (unch) 5.91bn 29 6.07%
5 UniCredit (unch) 5.76bn 40 5.91%
6 Societe Generale (unch) 5.61bn 26 5.76%
7 HSBC (unch) 4.66bn 24 4.78%
8 Natixis (unch) 4.44bn 26 4.56%
9 UBS (unch) 3.42bn 19 3.51%
10 Deutsche Bank (unch) 3.38bn 20 3.47%

Source: Informa Global Markets



CBPP3 Data:

CBPP3 Cumulative (EUR bn) Reference date No. days Implied annual purchase rate Implied monthly purchase rate Implied daily purchase rate (latest week) (Eur bn) CBPP3 Weekly
203.731 06/01/2017 576 89.486 7.457 0.043 0.215
207.216 13/01/2017 581 90.233 7.519 0.697 3.485
207.456 20/01/2017 586 89.567 7.464 0.048 0.240
207.864 27/01/2017 591 88.984 7.415 0.082 0.408
209.664 03/02/2017 596 89.002 7.417 0.360 1.800
211.004 10/02/2017 601 88.825 7.402 0.268 1.340
211.282 17/02/2017 606 88.208 7.351 0.056 0.278
212.188 24/02/2017 611 87.862 7.322 0.181 0.906
213.137 03/03/2017 616 87.538 7.295 0.190 0.949
213.793 10/03/2017 621 87.101 7.258 0.131 0.656
214.672 17/03/2017 626 86.760 7.230 0.176 0.879
215.177 24/03/2017 631 86.275 7.190 0.101 0.505
214.446 31/03/2017 636 85.306 7.109 -0.146 -0.731
214.73 07/04/2017 641 84.753 7.063 0.057 0.284
215.517 14/04/2017 646 84.405 7.034 0.157 0.787
216.114 21/04/2017 651 83.989 6.999 0.119 0.597
216.374 28/04/2017 656 83.449 6.954 0.052 0.260
217.439 05/05/2017 661 83.226 6.935 0.213 1.065
218.6 12/05/2017 666 83.042 6.920 0.232 1.161
219.221 19/05/2017 671 82.657 6.888 0.124 0.621
219.349 26/05/2017 676 82.094 6.841 0.026 0.128
220.466 02/06/2017 681 81.906 6.825 0.223 1.117
221.672 09/06/2017 686 81.754 6.813 0.241 1.206
222.768 16/06/2017 691 81.563 6.797 0.219 1.096
222.837 23/06/2017 696 81.003 6.750 0.014 0.069
222.630 30/06/2017 701 80.350 6.696 -0.014 -0.207
223.046 07/07/2017 706 79.930 6.661 0.083 0.416
223.870 14/07/2017 711 79.661 6.638 0.165 0.824
224.632 21/07/2017 716 79.374 6.615 0.152 0.762
225.040 28/07/2017 721 78.967 6.581 0.082 0.408
225.580 04/08/2017 726 78.611 6.551 0.108 0.540
226.142 11/08/2017 731 78.268 6.522 0.112 0.562
226.570 18/08/2017 736 77.883 6.490 0.086 0.428
227.711 25/08/2017 741 77.747 6.479 0.228 1.141
228.023 01/09/2017 746 77.332 6.444 0.062 0.312
228.952 08/08/2017 751 77.130 6.428 0.186 0.929

Source: ECB & Informa Global Markets


Selective recent Covered deals (launch, current bid spread)

ISSUERCOUPON, MATURITYREOFFER SPREADCURRENT SPREADRATINGS
CMCICB0.75% 09/27MS 0MS -1.5Aaa/AAA/AAA
RFLBNI0.375% 09/24MS -3MS -3Aaa
BANDES0.875% 09/24MS +57MS +41--/--/AA-
CFF
0.375% 12/24MS -2MS -4.5Aaa/AAA
PBBGR0.05% 09/22MS -10MS -10.5Aa1
BRF0.375% 07/24MS +2MS 0--/AAA/--
WLBANK0.625% 08/27MS -12MS -10.5--/AAA/--
CMZB0.625% 08/27MS -11MS -11.5Aaa
MUNHYP0.625% 10/26MS -13MS -13Aaa
HSHN0.1% 07/20
MS +10
MS +6
Aa2
ACASCF0.875% 08/27MS +3MS -2Aaa/AAA/--
BQDAU0.5% 07/22MS +25MS +14Aaa/--/AAA
LEED0.5% 07/24MS +17MS +14.5Aaa/--/AAA
BZLNZ0.5% 07/24MS +15MS +12.5Aaa/--/AAA
NWIDE1.375% 06/32MS +30MS +17Aaa/AAA/AAA
HVB
0.125% 10/23MS -10MS -11
Aaa/--/AAA
AEGON
0.75% 06/27MS +12
MS +10AAA/AAA
ACACB
0.375% 09/24
MS -5
MS -7
Aaa/AAA/AAA
SPABOL
0.375% 06/24
MS 0
MS -2.5
Aaa/AAA
LBPSFH
0.625% 06/27MS 0
MS -1
--/AAA/--
DHY
0.375% 06/25
MS -10
MS -9Aa1
SEB
0.25% 06/24MS -5
MS -6.5
Aaa
BHH0.125% 10/23MS -14MS -16Aaa

eva.bobb@intinsider.com

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