The Swedish Covered Bond Corporation is issuing a five year benchmark today (Thursday) that confirmed Nordic credits’ ability to approach the market at tight levels. Meanwhile, the first dollar issue for an SFH hit the market, while Abbey and ABN Amro launched taps.

Leads Bank of America Merrill Lynch, Danske Bank, Goldman Sachs and UBS opened books on SCBC’s deal with guidance of the 35bp over area.

“It looks to be going well,” said a syndicate official away from the leads. “It’s fair, if not overly generous, and the books are over Eu1bn already. I wouldn’t be surprised if they came tighter than 35bp.”

The books were due to close at 1245 London time and guidance had yet to be refined as The Covered Bond Report was going to press. The last update on book size was Eu1.2bn and the deal was announced as a Eu1bn no-grow.

“It’s tight, but right,” said a syndicate official at one of the leads, “and that’s what the book shows. Yes, a couple of people might say that there’s not much in it, but the time is over when you need to pay 5bp-10bp new issue premiums.”

The guidance is in line with a 35bp re-offer spread of a five year for Finland’s OP Mortgage Bank, which was quoted at 34bp/29bp today, while outstanding 2015 SCBC paper was at 30bp/24bp and 2017 at 45bp/39bp.

The first dollar obligations à l’habitat issue was sold yesterday, by Crédit Agricole Home Loan SFH, after France’s former structured covered bond issuers were granted permission to convert themselves and their issuance to operate under new legislation. Bank of America Merrill Lynch, Barclays Capital, Crédit Agricole and Citi priced the $1.5bn July 2014 floating rate note at 75bp over three month dollar Libor.

ABN Amro Bank opened books on a Eu250m tap of a January 2018 issue this morning, with BNP Paribas taking orders at 68bp over mid-swaps. The outstanding Eu1.25bn issue was originally sold in early January at 70bp over.

Abbey National Treasury Services, guaranteed by Santander UK, tapped a Eu750m January 2018 issue for Eu350m yesterday afternoon through Natixis. Originally re-offered at 150bp over mid-swaps in January, the issue was tapped at 137bp over mid-swaps.

Abbey covered bonds in sterling have performed strongly this year, with a 2026 issue launched in February having tightened by some 30bp by the time it launched a 2021 deal last week. However, a banker suggested that the tighter level at which the euro issue was tapped was probably more a reflection of improved sentiment towards Abbey parent Santander, whose cédulas have performed.