Deutsche Hypo used a quiet day to print a “routine” Eu500m no-grow six year Pfandbrief this (Wednesday) morning, and further issuance is expected tomorrow, while RLB Steiermark is lining up a deal for early 2016. RD meanwhile tapped two krona FRNs.

Deutsche Hypothekenbank launched its new issue into a clear market this morning, with no other euro benchmark deal live in the FIG markets, and public holidays in France and the US, and syndicate officials said the German issuer had picked its day wisely.

“French participation in such German deals is next to nothing, so Deutsche Hypo was probably one of the only names that could get away with tapping the market today,” said a syndicate official away from the leads.

Leads Commerzbank, HSBC, NordLB, UniCredit and WGZ priced the Eu500m no-grow six year mortgage Pfandbrief at 8bp through mid-swaps, with the order book closing at around Eu800m. The deal was launched without initial price thoughts, with the leads announcing guidance of the minus 7bp area.

“This looks a good, routine trade,” said a syndicate official away from the leads.

A syndicate official at one of the leads said that total books had been above Eu800m and that they encountered some price sensitivity at the minus 8bp level.

“A few orders dropped, but not a substantial amount,” he said. “It was nothing that influenced the final outcome or the deal, as such.”

Syndicate officials away from the leads said fair value for the new issue was minus 12bp based on other issuers’ secondary levels.

“Offering a 4bp concession seems fair,” said a syndicate official away from the leads. “Premiums have been elevated but, for this sort of deal, that feels right, and we’ve seen similar deals go well with only a small pick-up.”

The syndicate officials also noted that the deal was priced flat to where a Eu500m long five year issue from apoBank landed on Wednesday of last week (4 November).

However, the lead syndicate official said it was more appropriate to interpret the premium from Deutsche Hypo’s own curve, and put the concession at 7bp.

The lead syndicate official added that demand was driven by banks, with German central bank participation in line with that of other recent Pfandbriefe, while roughly three-quarters of the deal was allocated to domestic accounts.

Syndicate officials said they expect more deals to be brought to the market tomorrow (Thursday), with issuance said to be unlikely on Friday and with good windows this year running out.

“Things feel like they are slowing down, but that does not mean the pipeline is thinning out,” said one. “Issuers are still looking to do pre-funding before the end of the year, as they expect the usual wave coming in January and because there is concern about how spreads will develop next year, while the discussion about QE is left with a question mark.”

Syndicate officials noted that Caisse Centrale Desjardins Du Quebec (CCDJ) yesterday (Tuesday) completed a roadshow for a potential euro deal and would be eyeing the market, with a euro debut from Deutsche Bank SAE and an inaugural sterling issue from DBS also expected.

“I don’t think this wave of supply is over just yet,” said another.

Raiffeisen-Landesbank Steiermark will on 23 November set out on a roadshow ahead of a potential euro-denominated Austrian mortgage covered bond issue in early 2016, having announced a mandate yesterday.

The roadshow will take in Germany, Vienna, Paris, Helsinki and Copenhagen, before concluding in Amsterdam on 27 November. BayernLB, Commerzbank, Crédit Agricole, Erste, Raiffeisen Bank International and Raiffeisen-Landesbank Steiermark have the mandate.

RLB Steiermark’s last benchmark covered bond issue was a Eu500m 15 year in June 2013.

The bank joins the pipeline alongside Austrian peer Hypo Tirol, which at the end of September completed a roadshow for a potential euro benchmark issue.

Realkredit Danmark (RD) is tapping two Swedish krona FRN Danish mortgage covered bonds today, each by Skr1bn, increasing an October 2018 issue to Skr5.3bn and an October 2019 issue to Skr1.92bn.

Leads Danske (RD’s parent), Svenska Handelsbanken and Swedbank reopened the October 2018 tranche with guidance of the 65bp over three month Stibor area and the October 2019 tranche at the 85bp area. The guidance was then kept unchanged as the combined books reached “well above” Skr2bn, with demand skewed towards the 2019 maturity, and the pricing was fixed in the middle of guidance, at 65bp and 85bp, respectively.

A syndicate official at one of the leads said the spreads compared with equivalent krona covered bond levels for Swedish peers such as Stadshypotek of the mid 20s for the 2018 tranche and the low 30s for the 2019 tranche.