Pbb is pricing a 19 year Pfandbrief today (Wednesday), the longest-dated benchmark since January 2015, while Eika sold a Eu500m seven year offering a pick-up to a recent DNB deal. Nationwide is selling a sterling FRN, while Leeds is set to launch a debut euro benchmark tomorrow.

Deutsche Pfandbriefbank (pbb) leads BayernLB, BNP Paribas, LBBW and NordLB launched the 19 year public sector Pfandbrief with guidance of the 27bp area, before fixing the spread at 25bp on the back of over Eu600m of orders from around 30 accounts. The size had not been fixed at the time The CBR went to press.

A syndicate official at one of pbb’s leads said the issuer had opted for the 19 year maturity to fit its ALM needs and in order to appeal to buyers of longer-dated paper.

He said pbb had been targeting a coupon of 1.25%, which he said would be achievable with 19 year swaps at 1.03 this morning.

The deal is the longest dated benchmark covered bond since January of last year, when Caffil [corrected from CFF] sold a Eu500m 20 year issue.

“It is certainly the longest-dated Pfandbrief I can remember,” he added.

The lead syndicate official noted that pbb’s longest-dated outstandings are May 2028s, seen at 16bp, mid. He said this suggested fair value for the new issue was around 19bp.

Eika Boligkreditt leads Commerzbank, Danske, LBBW, Natixis and Swedbank launched the Eu500m (Nkr4.69bn) no-grow seven year with guidance of the 27bp over mid-swaps area. Guidance was then revised to the 25bp area plus or minus 1bp, before the spread was set at 24bp, with the book “well above” Eu900m.

Syndicate officials said the deal offered a new issue premium of around 2bp-3bp, based on the bid side of Eika’s secondary curve.

Bankers noted the new issue was priced 8bp back of a Eu1.5bn seven year on Monday for fellow Norwegian issuer DNB Boligkreditt, and said this is in line with the usual differential between Eika and the more established Norwegian issuers.

“That clearly will have helped this deal,” said a syndicate official away from the leads. “Investors are looking for anything with a bit of a pick-up at the moment.”

Nationwide leads Barclays, BNP Paribas, Nomura and RBC launched the three year sterling-denominated floating rate note with initial price thoughts of the 50bp over three month Libor area.

The deal is the second sterling-denominated benchmark covered bond from a UK issuer this year, following a £750m three year FRN for Lloyds on 5 January.

Leeds Building Society is expected to issue its debut euro-benchmark covered bond tomorrow (Thursday), according to a syndicate official at one of leads Danske, HSBC, Natixis, UBS and UniCredit.

The UK issuer completed a European roadshow yesterday, and the leads announced this morning that the majority of investor feedback had suggested a preference for a deal with a maturity of around five years. They said the issuer was open to exploring the four year maturity due to its maturity profile.

A syndicate official at one of the leads cited as comparables Yorkshire Building Society June 2020s and Coventry Building Society November 2021s, both seen at 19bp, mid, as well as 2020 paper from Nationwide, Lloyds and Abbey, at 15bp-18bp.

We are now en route to the ECBC plenary in Copenhagen tomorrow, and hope to see many of you there!