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  • 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

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