Danish Ship Finance seizes moment with enhanced profile
Having waited out rates volatility, Danish Ship Finance sold a €500m ship covered bond last Tuesday and enjoyed a “bigger and better” book than on previous euro benchmarks, as investors followed S&P in looking at it more favourably than ever, according to the issuer’s funding team.
Stadshypotek takes Nordics to sevens at minimal NIP in €1bn
Stadshypotek, Svenska Handelsbanken’s covered bond issuer, added duration at a minimal new issue premium today and against a backdrop of tight spreads versus SSAs, printing a €1bn seven year trade inside krona levels in the sixth Nordic euro benchmark in eight working days.
Paragon pioneers buy-to-let in RMBS-to-covered bond shift
Paragon Bank debuted the first UK regulated covered bond programme based on buy-to-let collateral last week, attracting over £1.4bn of orders to a £500m FRN that Paragon’s Karen Dench said marked welcome diversification into a stable funding source for the erstwhile RMBS stalwart.
DZ Hyp takes Germany to 7s, tests investor price sensitivity
DZ Hyp successfully extended the German Pfandbrief curve out to seven years for the first time in 2025 with a twice-subscribed €1bn deal today, but suffered the greatest book attrition of any euro benchmark covered bond yet this year, suggesting investors’ pricing limits are being tested.
Issuers achieve size and price as investor pile-on persists
Crédit Mutuel and Argenta Spaarbank were just the latest issuers to hit the high end of size expectations without compromising on price today, after DNB yesterday sold the largest euro benchmark covered bond yet this year, while DZ Hyp is expected with further supply tomorrow.
‘Gross imbalance’ means tight levels, big books for allcomers
A €500m Arkéa Public Sector SCF seven year today took the week’s euro benchmark issuance to a respectable €9.75bn from 12 tranches and 11 issuers, as covered bond supply belatedly picked up towards traditional new year levels amid bumper demand that flattened new issue premiums.
Slim pickings but fat books as covereds feel way into 2025
Just €4.25bn of euro benchmark covered bonds hit the market in the first week of 2025, down dramatically on previous new years and even quieter than expected, but the four issuers who did test the water found strong demand for their new issues.
Pfandbrief improvement seen after exiting unsecured shade
German issuers expect demand for Pfandbriefe to pick up in the coming months and have meanwhile been enjoying the strongest demand for their unsecured debt since the Association of German Pfandbrief Banks (vdp) launched its Issuance Climate survey two years ago.
Recent news
- Paragon files FCA covered application amid funding shift
- Investors open arms to BNPP 3s, MünchenerHyp plays safe
- CFF social 5s outshine LBBW. MünchenerHyp, BNPP due
- Signs of a turn for covered as DZ €500m beats expectations
- CIBC finds receptive mart as it finds room for euro return
- CIBC in ‘smooth’ €1.25bn 5s return amid modest pipeline
- Berlin Hyp grabs attention in Blockchain Pfandbrief first
Latest benchmarks and subs
| Stadshypotek | |||
| EUR1bn | 2.875% | 2032 | +40bp |
| Sparebanken Vest | |||
| EUR750m | 2.750% | 2030 | +34bp |
| DNB | |||
| EUR1.50bn | 2.625% | 2029 | +30bp |
| ASB | |||
| EUR500m | 2.971% | 2030 | +46bp |
| Danish Ship Finance | |||
| EUR500m | 3.250% | 2031 | +77bp |
| Click issuer for more | |||
Categories
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