Nykredit Realkredit begins a senior secured roadshow today (Monday) and Sparkasse Hannover is out with its first public issue, a Eu100m five year deal, as public holidays contributed to a quiet start in benchmark covered bonds, although supply is expected in the coming days.

Sparkasse Hannover, Hannover

No new FIG deals were launched this morning, with public holidays in several European countries and in the US to mark Armistice Day/Veterans Day contributing to the quiet start. Markets will also be digesting heavy supply last week and macro-developments in the shape of a surprise European Central Bank (ECB) rate cut and positive US employment figures, said a syndicate official.

More than Eu8bn of FIG supply hit the market last week across a range of maturities and credit quality, with the senior unsecured market particularly active. In benchmark covered bonds DNB Boligkreditt and Bank of Ireland Mortgage Bank provided supply at opposing ends of the spread spectrum, with both deals “stellar” and performing well, said a syndicate banker.

“The market is open,” he said. “Issuers should get on with it.”

Another syndicate official said that he expects the primary markets to be quite busy tomorrow across FIG and corporate debt, after today’s holiday-driven lull. One syndicate banker said that there could be further Nordic covered bond supply this week.

The only primary market activity in covered bonds today is a new issue for Germany’s Sparkasse Hannover, which is launching its first public deal.

Leads DekaBank, NordLB and Sparkasse Hannover are marketing a Eu100m five year public sector Pfandbrief at guidance of flat to 1bp over mid-swaps. The deal is set to be a domestic affair, taken up by regional German investors, according to a banker on the deal.

Nykredit Realkredit, meanwhile, is beginning investor meetings today in preparation of a euro senior secured issue, the first that will be for overcollateralisation purposes rather than, as previously, for reasons of CRD compliance. (See here for more.)

National Bank of Canada has entered a blackout period after finishing part of a European roadshow last week, according to a syndicate official at one of the banks involved – BNP Paribas, Commerzbank, NBC and RBS. The issuer reports fourth quarter results on 4 December and will resume some marketing thereafter, having not yet visited London, for example, he said.