No new covered bond issues were launched this (Tuesday) morning, but a mandate may yet be announced today, while Berlin Hyp, which went on a roadshow last week, is waiting for supervisory approval of revised documentation necessitated by an upgrade of its mortgage Pfandbriefe.

New supply came relatively early to the benchmark covered bond market this week, with Aktia Bank and UniCredit Bank Austria yesterday (Monday) each pricing Eu500m no-grow issues, which syndicate officials said went well, attracting good demand and offering limited new issue premiums. (See separate articles.)

Some bankers have said that issuance may slow in the lead-up to Easter holidays. One said that the market sold off yesterday – mainly in global equities – and that some deals outside of the covered bond market did not fare well, but that a positive result for a European Financial Stability Facility today could encourage supply.

“But I don’t see much on the horizon,” he said.

Another syndicate banker said that there will be a new mandate announced later today, which he said will likely be tomorrow’s business. He did not provide further details, but said that it would be “surprising”.

Another syndicate banker said that while the market was quiet today it is in good shape for issuance, and highlighted 10 years as a good maturity for core jurisdictions.

Berlin Hyp went on a deal-related roadshow last week, via Commerzbank, Credit Suisse, DZ Bank, JP Morgan and LBBW, and some syndicate bankers away from the leads had suggested a deal could emerge this week. The issuer’s mortgage Pfandbriefe were upgraded from Aa1 to Aaa on Friday morning, and an official at the bank said that the new rating has to be documented in an attachment to the issuer’s base prospectus and approved by the supervisory authority, which the issuer expects to happen soon.

A syndicate official at one of the Berlin Hyp leads said that the issuer was in no rush to come to market.

“Berlin Hyp has not set a timeframe within which to come to market,” he said. “It had merely left the option open to issue before Easter, and as it is in no rush it can also issue after Easter.”

He added that he does not expect a new issue this week due to the need to amend the documentation.