skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Informa pharma logo

Financial Intelligence is part of the Informa Intelligence Division of Informa PLC

This is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IFI Logo
Search Icon RecommendationsProduct loginProductLogin
Global Search Configuration
  • EUR-denominated primary covered bond supply increased to EUR2.85bn from 6 separate tranches in the week ending 22nd September, a marked increase from last week's zero issuance. Meanwhile, there were two new additions to the pipeline.
  • Year-to-date EUR supply now stands at EUR92.4bn versus EUR109.3bn for the same period in 2016. Weekly issuance comparisons are illustrated in image 6 below.
  • Caisse Francaise de Financement Local (CAFFIL) got the ball rolling on Monday, launching its fourth Obligations Foncieres this year - a EUR750m Sep-2027 (Aaa/AA+/AA) via Deutsche Bank, ING, LBBW, NatWest and Santander. A EUR1.9bn+ final book saw initial guidance whittled down 5bp to a m/s -2bp reoffer level, which was ca. 1bp through the issuer's curve. Click here for relative value analysis and here for distribution stats.
  • Banco Santander Totta re-opened the Portuguese Obrigacoes Hipotecarias sector on Tuesday with a EUR1bn Sep-2027 line (A1/A/A by Moody's/Fitch/DBRS) with Barclays, Credit Suisse, Natixis, Santander and SG CIB at the helm. The deal attracted orders in excess of EUR3.25bn - one of the largest book sizes for a EUR benchmark covered bond this year - aided by rarity value and the sovereign's recent upgrade. Click here for more background and here for placement statistics.
  • Also on Tuesday, Deutsche Pfandbriefbank AG increased its outstanding EUR500m, 0.05%, 9 August 2021 Mortgage Pfandbrief by EUR100m, pricing the tap at m/s -14bp. Commerzbank, DekaBank, LBBW, UniCredit led the re-opening.
  • PKO Bank Hipoteczny S.A.'s well flagged third euro covered bond emerged on Wednesday as a EUR500m (no grow) Aug-2024 issue (Aa3) which extends the curve out a further 19 months from the Jan-2023 deal issued in March. The EUR1.35bn+ book took m/s +35bp area initial guidance down to a m/s +28bp reoffer, in line with fair value. HSBC, LBBW, PKO and UBS were leads with DekaBank and Erste as co-leads. Click here for more background.
  • Stadtsparkasse Muenchen provided Thursday's covered bond issuance with a EUR250m (no grow) Sep-2027 Mortgage Pfandbrief issue (AA+ by Fitch). The deal landed 1bp inside guidance at m/s -9bp. BayernLB and Stadtsparkasse were bookrunners. The full comps list can be found here.
  • Commerzbank AG rounded off an active week on Friday with a EUR250m tap of its 0.625% 24 September 2027 Mortgage Pfandbrief (Aaa) via ABN Amro, BBVA, Commerzbank, NordLB and UniCredit. The spread was set at m/s -13bp from the outset, a pick-up of ca. 1bp versus the mid level of the outstanding notes pre-announcement.
  • Turning to the pipeline, Nationale-Nederlanden Bank N.V. (NN Bank), announced a roadshow for its debut EUR500m (no grow) intermediate maturity Conditional Pass-Through Covered bond, one day after it established its programme. Also, ASB Finance Limited, acting through its London Branch, has scheduled meetings for a 5-7yr euro benchmark covered bond, its first of the year. More details on both these deals are in table 2 below.
  • The ECB settled EUR229.979bn under the CBPP3 to the week ending 15 September, with the latest data representing a EUR1.027bn week-on-week increase and a EUR205m implied daily purchasing rate.


Weekly round-up:

Pxg DateIssuer - Ticker
(Type/Collateral)
Amt
(EUR m)

MaturityInitial guidanceRevised guidanceReofferSpread compression
(bp)		Book size
(EUR m)		Cover Ratio

NIC
(bp)		Trading*
(bp)
18-SepCaisse Francaise de Financement Local - CAFFIL
(Obligations Foncieres)		75027-Sep-2027
(10yr)		m/s+3am/s+0 (+/-2, wpir)m/s-2519002.53-1-3
19-SepBanco Santander Totta - SANTAN (Obriga��es Hipotec�rias)100026-Sep-2027
(10yr)		m/s+high 50sm/s+50a (+/-2, wpir)m/s+48~1032503.25138.5
19-Seppbb Deutsche Pfandbriefbank AG - PBBGR
(Hypothekenpfandbrief) (+)		1009-Aug-2021
(3.91yr)		N/AN/Am/s-140N/AN/A1-13.5
20-SepPKO Bank Hipoteczny - PKOBHB
(Polish Residential Covered Bond)		50027-Aug-2024
(6.91yr)		m/s+35am/s+30a (+/-2, wpir)m/s+28013502.7027.5
21-SepStadtsparkasse Muenchen - SSPMUE
(Hypothekenpfandbrief)		25028-Sep-2027
(10yr)		m/s-8N/Am/s-902501N/A-7.5
22-SepCommerzbank AG - CMZB
(Hypothekenpfandbrief) (+)
25024-Aug-2027
(9.91yr)		N/AN/Am/s-1301
Totals:
28506750
Averages:4758.4552.51687.52.370.4

* versus Friday morning's bid levels


This week's additions to the pipeline:

IssuerCurrencyBookrunnersRatingsTypeNotes
Nationale-Nederlanden Bank N.V.EURABN Amro, BNP Paribas, LBBW and RabobankAAA by S&PDutch Conditional Pass Through Covered BondMeetings from Monday 25 September for an inaugural Conditional Pass-Through RegS Bearer EUR 500m (no-grow) covered bond with an intermediate maturity
ASB Finance Limited (London Branch)EURBarclays and Commerzbank Aaa/AAA by Moody's/FitchNew Zealand Covered BondMeetings in Europe in the week commencing 2 October 2017 for a 5-7 year covered benchmark bond, guaranteed by ASB Bank Limited

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) 6.20bn 44 6.71%
2 LBBW (unch) 5.99bn 34 6.48%
3 Credit Agricole CIB (unch) 5.53bn 31 5.99%
4 BNP Paribas (unch) 5.45bn 29 5.90%
5 Societe Generale (up from 6) 5.39bn 27 5.83%
6 UniCredit (down from 5) 5.33bn 42 5.77%
7 HSBC (unch) 4.44bn 25 4.80%
8 Natixis (unch) 4.24bn 27 4.59%
9 UBS (unch) 3.33bn 20 3.60%
10 Deutsche Bank (unch) 3.21bn 21 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 08/09/2017 751 77.130 6.428 0.186 0.929
229.979 15/09/2017 756 76.964 6.414 0.205 1.027

Source: ECB & Informa Global Markets


Selective recent Covered deals (launch, current bid spread)

ISSUERCOUPON, MATURITYREOFFER SPREADCURRENT SPREADRATINGS
PKOBHB0.75% 09/27MS +28MS+27.5 (-1)Aa3
SANTAN1.25% 09/27MS +48MS +38.5 (-0.5)A1/--/A
CAFFIL0.75% 09/27MS -2MS -3 (unch)Aaa/--/AAA
CMCICB0.75% 09/27MS 0MS -3.5 (unch)Aaa/AAA/AAA
RFLBNI0.375% 09/24MS -3MS -3 (unch)Aaa
BANDES0.875% 09/24MS +57MS +34 (-1.5)--/--/AA-
CFF
0.375% 12/24MS -2MS -6 (-0.5)Aaa/AAA
PBBGR0.05% 09/22MS -10MS -11 (unch)Aa1
BRF0.375% 07/24MS +2MS -1.5 (-0.5)--/AAA/--
WLBANK0.625% 08/27MS -12MS -14 (+0.5)--/AAA/--
CMZB0.625% 08/27MS -11MS -12.5 (-unch)Aaa
MUNHYP0.625% 10/26MS -13MS -14 (-0.5)Aaa
HSHN0.1% 07/20
MS +10
MS +6 (-0.5)
Aa2
ACASCF0.875% 08/27MS +3MS -2.5 (unch)Aaa/AAA/--
BQDAU0.5% 07/22MS +25MS +13 (unch)Aaa/--/AAA
LEED0.5% 07/24MS +17MS +11.5 (-1)Aaa/--/AAA
BZLNZ0.5% 07/24MS +15MS +11.5 (-0.5)Aaa/--/AAA
NWIDE1.375% 06/32MS +30MS +16.5 (unch)Aaa/AAA/AAA
HVB
0.125% 10/23MS -10MS -11 (unch)
Aaa/--/AAA
AEGON
0.75% 06/27MS +12
MS +9.5 (-0.5)AAA/AAA
ACACB
0.375% 09/24
MS -5
MS -7.5 (-0.5)
Aaa/AAA/AAA
SPABOL
0.375% 06/24
MS 0
MS -3.5 (-0.5)
Aaa/AAA
LBPSFH
0.625% 06/27MS 0
MS -3 (-1)
--/AAA/--
DHY
0.375% 06/25
MS -10
MS -9.5 (-0.5)Aa1
SEB
0.25% 06/24MS -5
MS -7 (unch)
Aaa
BHH0.125% 10/23MS -14MS -16.5 (unch)Aaa

eva.bobb@intinsider.com

Recommended Articles

  • IGM Credit, IGM FX and Rates

    The Context 02.18.20

    18 Feb 2020

    Inside this week’s edition of The Context, Financial Intelligence thought leaders discuss: The JPY Week - Bias is Bearish Has the impact of coronavirus now peaked? We say such talk is premature and an underlying bid Usd/Jpy will continue to slow into 110.00-plus. Euro FIG Snapshot: Virus Protection Fully Operational With the recovery in risk assets extending into a second week, more issuers emerging from blackout and the credit market's virus protection evidently up to date, the pace picked up in the non-covered primary FIG market last week. Equities Ignore, Hope … Euro Indicates Slowing EMU Economy It doesn’t take much to light a fire under equities, but it is going to take much more to push bond yields higher... Read more from The Context and subscribe to have it delivered to your inbox each week!

    Topics Industry News

    View Whitepaper

  • IGM Credit, IGM FX and Rates

    China Insight: Credit Bonds Will Play Catch up on More Supportive Measures

    By Tim Cheung 18 Feb 2020

    The authorities, MOF, PBOC and CBIRC, hosted a joint conference on Feb 7 to provide an update on supportive policies in light of the coronavirus situation. We believe the conference delivered a loosening bias tone as a nimble response to the virus outbreak. Next move following the huge liquidity injection and provision of first batch of special relending funds to more than a dozen of banks is going to be an LPR cut on 20 Feb. We expect a 10bp cut in both 1-year and 5-year LPRs on 20 Feb (chart 1), similar to the magnitude of the latest OMO rate cut. A more sizable cut may mean the policymakers are opting for more aggressive monetary easing to cushion the economic shocks arising from the coronavirus outbreak.      

    Topics Industry News

    Read Blog

  • IGM Credit

    China Insight: Credit bonds will play a catch up on more supporting measures

    13 Feb 2020

    China Insight: Credit bonds will play a catch up on more supporting measures

    View Analysis
;

Any questions? Speak to a specialist

Would you like to request sample data or analysis from Informa Financial Intelligence? 

Request a callback
See how our tailored solutions can help you gain a competitive advantage: 
Request a free demo