Syndicate bankers are expecting next week to yield the first new benchmark covered bonds of the month given improved market conditions and issuers emerging from blackouts, with entities such as Commerzbank that have recently roadshowed among a host of candidates.

For the first time this year a working week has passed without any new supply in benchmark covered bonds, making for negative net supply of Eu5.75bn in euros, according to Joost Beaumont, fixed income strategist at ABN Amro.

“The ECB meeting, today’s US job report, market turmoil related to emerging markets, as well as banks being in black-out, have all been factors at play,” he said.

The European Central Bank yesterday kept interest rates on hold, which a syndicate official said was mainly a non-event given that it was in line with expectations, although some market participants had positioned themselves for a cut.

Several syndicate officials said they were not aware of any concrete new issue projects for next week, but that they expect supply to emerge and for the primary market to potentially be fairly busy.

“The coast is clear for anyone who wants to come, although being a peripheral borrower helps,” he said.

Another syndicate official said she expects at least three to four deals to be launched, with those issuers that have recently been on roadshow the most likely candidates – “no brainers” – and a few others that have emerged from blackouts to join them.

“I don’t see why there shouldn’t be decent supply,” she said.

Kommunalkredit Austria has been on a roadshow in connection with a planned public sector benchmark since the end of January, and wraps up its series of investor meetings today (Friday).

HSBC, LBBW, Natixis, Raiffeisen Bank International and UniCredit have the mandate. The issuer and the leads were due to discuss the new issue project this afternoon. A Eu500m seven year issue is said to be under consideration.

Other issuers that have been on the road are NordLB and Commerzbank. NordLB has mandated Commerzbank, DZ Bank, NordLB, Société Générale and UniCredit and is targeting a second issue off its aircraft Pfandbrief programme. Commerzbank roadshowed its SME backed structured covered bond programme a couple of weeks ago, and could launch a deal after its results are released, on Thursday. Commerzbank, Crédit Agricole, Credit Suisse and Deutsche Bank have been mandated.

Pohjola Bank and OP Mortgage Bank have mandated JP Morgan to help Pohjola Bank arrange a series of fixed income meetings. An official at one of the issuers said this was a standard investor relations exercise following the announcement of Pohjola’s results.

Away from those issuers that have been on roadshows, Nordic banks and a second tier Spanish institution have been mentioned as possible new issuance candidates. Danske, DNB, the four major Swedish banks, and other Nordic issuers have released results, while several Spanish banks have also reported.

Spanish covered bond supply has been limited to one deal so far this year, for Banco Mare Nostrum, with issuers said to be in no hurry to tap the market and also interested in senior unsecured possibilities. BBVA, meanwhile, has mandated for a euro Additional Tier 1 transaction following a roadshow.

However, a syndicate official said that while many Spanish issuers may be under no pressure to raise funding, spreads are “extremely tight” and issuers will be aware of the potential for volatility to scupper issuance possibilities as the year unfolds.

“There are a lot of asset managers who would be very interested in bringing a higher beta cédulas,” he said. “And we’re talking seven to 10 years, too”.