Primary market-related benchmark covered bond activity was limited to Spain’s Caja Rural de Navarra beginning a roadshow today (Monday), but bankers expect a few transactions to be launched this week given supportive market conditions.

Co-operative bank Caja Rural de Navarra is working with Banco Cooperativo Español, Barclays, Crédit Agricole and DZ Bank, and will visit investors in Frankfurt, London and Paris before a possible public covered bond debut.

Also roadshowing this week is Italy’s Credito Emiliano, via Barclays, ING, Natixis, RBS and Société Générale, although its investor meetings are scheduled to extend into June, too, as the bank updates investors on its credit profile. An official at the issuer previously told The CBR that it is more focussed on covered bonds, although senior unsecured issuance could make sense in connection with shorter dated maturities. (See here for previous coverage.)

Its peer Banca Popolare di Vicenza has also mandated for a roadshow, but this is linked to a credit update before a possible senior unsecured transaction. The issuer does not have an obbligazioni bancarie garantite (OBG) programme.

The roadshow mandate announcements came during a week of heavy peripheral supply last week, mainly from governments, with Italy selling a Eu6bn 30 year bond and Spain following with a Eu7bn 10 year issue.

The debt capital markets were quiet in euros this morning, but bankers said that market conditions are good.

“The market is very stable, very solid,” said one. “Spreads are really tight and there is a lot of cash still around.”

He said that a few covered bond deals are unofficially mandated, and that he would expect to see two to three transactions come this week. Today is a public holiday in many parts of Europe.

Another banker also said that he would expect deals to be launched this week given that spreads are at long time lows in covered bonds and that it would make sense for issuers to take advantage of this even if they do not have pressing liquidity needs.

The market is without any clear direction today, he added, but the iTraxx senior and covered bond indices were a little bit tighter.