KHFC will probably launch a dollar covered bond “pretty soon” after having completed a roadshow, according to a lead syndicate banker, while market conditions this (Monday) morning were said to be supportive for core euro supply despite few signs of firm plans.

Korea Housing Finance Corporation finished a roadshow for a Reg S/144A/3c7 dollar covered bond on Thursday, and could launch a deal this week, according to a syndicate banker at one of the leads – Citigroup, Nomura and Standard Chartered.

He said that the roadshow went well, with strong reverse enquiry registered.

The outlook this morning was otherwise for a subdued week for benchmark covered bond supply, according to syndicate bankers, although market conditions are supportive and some issuers are said to be looking, with Sweden, France and Germany mentioned as the most likely provenance of supply this week. A Pfandbrief issuer is said to have been or be considering a deal for early this week.

“I hope business picks up, but everyone is waiting on the return – or not – of Berlusconi,” said one.

Today is the second day of voting in an Italian general election that is expected to lead to a coalition government being formed. A syndicate official said the elections did not seem to be affecting core European markets very much, but that the outcome would be more relevant to the periphery.

“The overall tone in the credit markets is strong,” he said. “The UK downgrade has been shrugged off, Asia had a good overnight session and the deals that are out are going well.”

Zurich Insurance, for example, is out with a hybrid deal.

Moody’s cut the UK from Aaa to Aa1 over the weekend, although covered bond analysts said this would have negligible to no impact on UK covered bond spreads and no rating impact at an issuer or covered bond level.

Another syndicate official agreed that market conditions were good and that the deals that were priced last week were trading around flat to inside re-offer.

“The market is very stable, we just need to find issuers,” he said.

SEB, Commerzbank and Danske Bank sold new issues last week, while France’s BPCE tapped a February 2.75% February 2017 for Eu115m at 26bp over mid-swaps via Natixis and Nomura.

A syndicate banker on the tap said that small opportunistic increases are being contemplated by other issuers.