Danske Bank’s Finnish subsidiary is set to launch its first deal in over three years tomorrow (Thursday), a five year benchmark, and CCDQ is also expected with a euro five year after a roadshow, with the market surprisingly clear of issuance today after deals were well oversubscribed yesterday.

Stadshypotek took Eu1.7bn of orders for a Eu1.25bn long five year issue and Deutsche Bank SAE build a Eu1.6bn book for a Eu1bn debut cédulas yesterday, while the wider bond markets were also buoyant, but although syndicate officials described the market as being ready for more deals, no new benchmark issuance emerged today (Wednesday).

“It is quiet today – even too quiet,” said a syndicate official. “There is no reason for that, as the market feels fine, but it is getting late in the year, so even when conditions are encouraging it is not unusual for things to slow down.

“The market definitely feels good for tomorrow though.”

The mandate for Danske Bank plc (Finland) was announced this morning, with Credit Suisse, Danske Bank, ING, Société Générale and UniCredit as leads.

The issuer last tapped the market in September 2012 under its previous name, Sampo, with a Eu1bn seven year deal, two months ahead of its rebranding as Danske Bank. According to a banker at one of its leads, the new issue is being launched ahead of a Eu1bn redemption on 2 December.

“The collateral is there and they are confident in coming to the market,” he added, “and they like to remain in the market every now and then.”

The lead banker said that the change in name and length of time since the Finnish entity last issued may mean that some accounts believe it to be an inaugural deal even if it is not. However, he said that there is clearly no need for a roadshow.

“It is still super-solid Finnish collateral,” said the lead banker, “it is inside the purchase programme, and five years is the sweet spot of the market, so I don’t anticipate any problems.”

He nevertheless said that announcing the deal today would give the leads the opportunity to deal with any queries and noted that a lack of issuance would help market participants focus on the project.

Parent Danske Bank last tapped the market on 1 September, with a Eu1bn five year backed by its I-pool. That was re-offered at 5bp over mid-swaps and was quoted at 9bp, mid, today according to one of its leads.

The most recent Finnish benchmark was a Eu1.25bn issue for OP Mortgage Bank this Monday that was priced at 5bp over mid-swaps on the back a book approaching Eu1.8bn.

Caisse Centrale Desjardins du Québec (CCDQ) announced the mandate for its five year euro-denominated mortgage-backed issue this afternoon, with leads Barclays, DZ, Natixis and RBS. The deal is expected tomorrow, according to a syndicate official at one of the leads.

The deal comes after a European roadshow, which was completed last week, and an update to the issuer’s programme documentation following the announcement of its third quarter results last Friday.

CCDQ’s most recent benchmark covered bond issue was a Eu1bn five year priced in October 2014. The last Canadian euro benchmark was a Eu1bn seven year issue for Bank of Montreal that was priced at 17bp over mid-swaps on 14 September.

The lead syndicate official saw CCDQ October 2019s at 13bp, mid, today and five year paper from Canadian peers Bank of Montreal, Bank of Nova Scotia and Royal Bank of Canada in a 12bp-15bp range.