Paragon files FCA covered application amid funding shift
The UK’s Paragon Banking Group has submitted an application to the Financial Conduct Authority to issue covered bonds after having completed structuring, as it seeks to increase wholesale funding flexibility while moving away from residential mortgage-backed securities issuance.
Investors open arms to BNPP 3s, MünchenerHyp plays safe
BNP Paribas scored a second French success of the week today, attracting peak demand of some €2bn to a €500m three year covered bond and keeping its new issue premium negligible, while MünchenerHyp erred on the side of caution with a €500m follow-up to yesterday’s German supply.
CFF social 5s outshine LBBW. MünchenerHyp, BNPP due
Euro benchmark covered bond supply made a relatively strong start to the week today (Monday), with two new issues out and at least two more expected imminently, although a €500m five year social bond for CFF put a €500m four year public sector Pfandbrief for LBBW in the shade.
Signs of a turn for covered as DZ €500m beats expectations
DZ Hyp offered encouragement to the euro covered bond market with a stronger-than-expected €500m no-grow six-and-a-half year public sector Pfandbrief on Tuesday, while the week’s four deals all traded well to suggest the underperformance of the asset class could be turning.
CIBC finds receptive mart as it finds room for euro return
Evolving funding needs and a strategic commitment to the market contributed to Canadian Imperial Bank of Commerce successfully issuing its first euro benchmark in 18 months on Monday, a €1.25bn five year, according to Wojtek Niebrzydowski, vice president, treasury, at CIBC.
CIBC in ‘smooth’ €1.25bn 5s return amid modest pipeline
CIBC’s first euro benchmark in 18 months proved a success today, as the Canadian issued a €1.25bn five year with a 2bp NIP, as supply proved more modest than expected, even if mandates for Coventry Building Society and DKB were announced and KHFC printed a €650m 3.75 year.
Berlin Hyp grabs attention in Blockchain Pfandbrief first
The first blockchain-based Pfandbrief successfully settled on Tuesday after Berlin Hyp’s €100m three year mortgage Pfandbrief created a buzz around the possibilities of crypto securities in the covered bond market, a development that promises greater efficiency once challenges are overcome.
Germans cautious on outlook but steady on issuance plans
German Pfandbrief issuers are cautious about the outlook for the second half of the year, according to the vdp’s latest Issuance Climate survey, despite first half market conditions having proven even more buoyant than expected, although overall supply is on track to reach almost €50bn in 2024.
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Latest benchmarks
| Santander UK | |||
| USD1bn | 4.496% | 2027 | +60bp |
| Caffil | |||
| EUR1bn | 2.625% | 2029 | +57bp |
| Aareal | |||
| GBP325m | 5.000% | 2028 | flat |
| BPCE SFH | |||
| EUR1bn | 2.750% | 2030 | +46bp |
| La Banque Postale | |||
| EUR1bn | 2.750% | 2030 | +45bp |
| Click issuer for more | |||
Categories
CBPP3»
5/05/23 •
Covered bonds seen well set for July end to CBPP3 era2/28/23 •
BHH shows life after CBPP3, HSBC Canada joins in fives2/21/23 •
NN, Sabadell successfully hit last CBPP3 primary orders
Dollars»
12/06/23 •
Dollars offer pbb unexpected cheer amid tricky conditions5/19/23 •
Westpac $1.75bn fives open 2023 dollar covered strongly12/09/22 •
RBC, BMO back for Canadian last hurrah in dollars, sterling
