HSH Nordbank and the Swedish Covered Bond Corporation launched seven year euro benchmarks today (Tuesday), moving in from initial price thoughts considered relatively wide against a backdrop of wider financial markets negativity, while Ålandsbanken sold a Eu150m issue.

HSH went out with initial price thoughts of the low 10s over mid-swaps for its Eu500m deal, before moving to guidance of 7bp-9bp after taking Eu1.3bn of orders, and ultimately re-offering its mortgage Pfandbriefe at 7bp over mid-swaps after leads Crédit Agricole, Commerzbank, Deutsche, HSH Nordbank and NordLB had built a book of more than Eu1.5bn. The deal was set as a Eu500m no-grow from the start.

According to a syndicate official at one of the leads HSH Nordbank’s outstanding 2019s were bid at 5bp over mid-swaps before today’s deal was announced. He said that this took into account weaker markets yesterday – even if the covered bond market was strong – describing the IPTs as “inclusive”. He said that the leads were comfortably able to tighten the level to the 7bp re-offer given that there was little price sensitivity in the order book.

A syndicate official away from the leads said that even taking into account the market’s tone, the IPTs looked unnecessarily generous, and he said that he same was true of the IPTs for the Swedish Covered Bond Corporation (SCBC) issue.

Leads Bank of America Merrill Lynch, Barclays, Citi, Danske and RBS went out with IPTs of mid-swaps plus the low to mid-single digits for the seven year benchmark, then moved to guidance of the mid-swaps plus 2bp area. The final size was set at Eu1bn with a re-offer of 1bp over mid-swaps on the back of a Eu1.5bn order book.

Commerzbank and Danske priced a Eu150m four year Finnish covered bond for Alandsbanken. The Eu100m minimum issue had guidance of the mid-swaps plus 20bp area when books were opened this morning after an IPT phase yesterday afternoon at the same level. With orders of more than Eu150m the deal was fixed at that size and the re-offer at 20bp over mid-swaps.