CaixaBank attracted “impressive” orders of over Eu2.3bn for a Eu1.5bn seven year cédulas with a pick-up over the Spanish sovereign today, while Abbey sold a Eu1bn long five year. Meanwhile, Hamburger Sparkasse is set to return to the Pfandbrief market and Hypo Tirol is speaking to investors.

Syndicate officials said issuance conditions were still supportive this morning even if European equities fell, on the back of soft economic data out of China, after having opened positively.

“It was a fairly balanced, neutral start, and even in spite of that small reversal it is very much a go day in terms of new issuance,” said one. “It’s encouraging to see signs of life on a Monday morning, and there are positives to be taken from these deals.”

CaixaBank leads Barclays, CaixaBank, Goldman Sachs, Société Générale and UBS launched the seven year issue with initial price thoughts of the low to mid-80s, before moving to guidance of the 80bp area on the back of over Eu1.75bn of orders. The size of the deal was then set at Eu1.5bn and the spread at 78bp, with the book closing at over Eu2.3bn.

“Those are impressive books,” said a syndicate official away from the leads. “It’s certainly a positive outcome and encouraging for any other peripherals that might be eyeing the market.”

Syndicate officials said the deal looked attractive as it offered a pick-up to the Spanish sovereign, with seven year Bonos seen trading at 70bp.

Some syndicate officials saw the deal as offering a new issue premium of 20bp-25bp, seeing CaixaBank January 2022s at 56bp, bid, and March 2024s at 68bp.

However, others said the most relevant comparables are CaixaBank November 2020s, seen at 53bp mid, and March 25s, seen at 80bp, as these are the issuer’s most recent benchmark deals. They said fair value for the new issue was therefore around the mid 60s.

“You can say it looks generous, but then all recent peripheral trades have looked generous,” said a syndicate official away from the leads. “It is the right approach.”

Another syndicate official agreed.

“Depending on whether or not you classify AIB as a proper peripheral issuer, this is arguably the first true test of a peripheral, higher beta name since Santander on 13 January, so that kind of premium is appropriate, ” he said. “It is a respectful concession.”

Abbey National Treasury Services leads Crédit Agricole, Danske, Natixis, Santander and UniCredit launched the August 2021 issue with guidance of the 25bp area, before moving to guidance of the 23bp area plus or minus 1bp on the back of orders approaching Eu1.3bn. The size of the deal was then set at Eu1bn and the spread at 23bp, with the book closing at Eu1.3bn.

“It looks good,” said a syndicate official away from the leads. “Maybe they have paid up a little, but it’s a decent result.”

Syndicate officials away from the deal said fair value for the new issue is difficult to calculate, as Abbey’s outstandings are relatively illiquid. However, they noted that the deal came wider than recent five year paper from comparable issuers.

They highlighted that a Eu1.5bn five year issue for Lloyds on 11 January, the only other euro benchmark from a UK issuer this year, had been priced at 17bp and that a Eu1bn five year issue for SCBC last Tuesday had also been priced at that level.

“SCBC got a good deal done less than a week ago, when conditions were challenging, with a smaller spread,” said one. “For only a half a year extension, Abbey’s price looks attractive.”

However, another syndicate official, seeing the Lloyds January 2021s at 19bp, bid, noted that Abbey usually trades 1bp or 2bp back of its fellow UK issuer.

“They are having to pay up a little, as they are not quite on the same level as a Lloyds or a Nationwide,” he said.

Syndicate officials also suggested that some investors may have also had line issues, given the quantity of outstanding deals from Abbey and issuers in the Santander group.

“The five year section is the best part of the curve to be in at the moment, so it was a sensible choice,” added another syndicate official, “but they already have a lot of five year paper, so maybe they are paying up for that, too.”

Syndicate officials said they expect further covered bond issuance from a range of jurisdictions this week, but that the pace may slow after a heavy January, with many issuers in or entering blackout periods.

Hamburger Sparkasse this morning announced it will hold a series of investor meetings in Germany commencing on 16 February ahead of a potential euro benchmark mortgage Pfandbrief, with leads Commerzbank, Deka, LBBW and WGZ.

A syndicate official at one of the leads said that Hamburger Sparkasse launched its inaugural benchmark covered bond in April 2006, but added that its last outstanding benchmark matured in March 2014.

“Although this isn’t a debut the issuer obviously hasn’t been active for a while, and it is important to update accounts so we are doing a proper roadshow across Germany”, he added. “It should be a nice project.”

Hypo Tirol this morning also announced that it will hold a global investor call this afternoon to update investors about developments regarding the credit and the Austrian covered bond market, ahead of a potential euro benchmark issue.

The Austrian issuer had held a roadshow at the end of September with leads Barclays, Deutsche, Erste, LBBW and Société Générale to promote the deal, but the deal did not emerge.

A syndicate official at one of leads said a deal will not necessarily follow the update call.