Key covered bond risk weight halved in ECON draft report
The risk weight applicable to European Covered Bonds (Premium) under the Standardised Approach could fall from 10% to 5% under amendments put forward in a draft ECON report, with covered bond proponents keen for the instrument to retain its favoured status versus securitisation.
Good times set to roll into 26, vdp issuance survey finds
The vdp’s twice-yearly Issuance Climate survey has recorded a positive score for the outlook for Pfandbrief issuance for the first time, after market conditions proved more buoyant than expected in the second half and with overall Pfandbrief supply up 22% this year.
2026 supply of €160-170bn flagged as ‘tipping point’ nears
Early forecasts for next year’s euro denominated benchmark covered bond issuance are coming in at €160bn-€170bn, likely around 10% up on this year’s supply, with a pick-up in lending seen nudging volumes higher, although analysts suggest net issuance amounts are relatively digestible.
Little appetite for reopening ‘Pandora’s Box’ post EBA
EMF-ECBC secretary general Luca Bertalot and others questioned the appetite for pressing ahead with EBA recommendations that might only deliver marginal gains during an S&P webinar last week, but talked up the potential rewards of working towards third country equivalence.
Lloyds reaps tight rewards in strong £1bn covered return
Lloyds’ first sterling benchmark covered bond in almost three years, a £1bn five year FRN, yesterday attracted over £1.75bn of orders and achieved the tightest pricing on any Sonia-linked deal in over a year, with its scarcity value and a buoyant underlying market cited as factors in its success.
‘Pragmatic’ Caffil ends 2025 with positive €1.25bn trade
Caffil wrapped up the Sfil group’s 2025 funding programme last week, adopting a pragmatic approach to successfully navigate French political developments to attract some €4.2bn of orders to a €1.25bn long seven year covered bond, Gonzague Veillas at Sfil told The CBR.
Scarcity helps Hypo Noe to ‘fantastic’ long fives result
Hypo Noe Landesbank für Niederösterreich und Wien generated one of its biggest ever order books for a €500m no-grow long five year covered bond today, with a dearth of covered bond supply and especially Austrian paper cited as contributing to some €2.3bn of orders and zero NIP.
Bawag creates Austro-Dutch covered as Knab votes pass
Bawag last week gained bondholder consent to take over as issuer of the covered bonds of acquiree Knab, in a move that creates unique cross-border issuance subject to the rules of both Austrian and Dutch jurisdictions.
Recent news
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- Nationwide sells first UK fixed sterling in decade on reverse bid
- Public sector Pfandbrief first takes Haspa to new heights
- Size matters as Sparebanken Norge plants debut €1bn flag
- CIBC gives gallic shrug as €1.25bn 5.5s prove tempting
- Wales’ Principality prepares for covered bond issuance
Latest benchmarks and subs
| United Overseas Bank | |||
| GBP750m | FRN | 2029 | +52bp |
| Achmea Bank | |||
| EUR500m | 2.875% | 2033 | +34bp |
| United Overseas Bank | |||
| EUR850m | 2.718% | 2030 | +30bp |
| Westpac | |||
| EUR1bn | 2.912% | 2032 | +36bp |
| ING | |||
| EUR2bn | 2.750% | 2032 | +31bp |
| 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
