DKD, Deutsche, Banca Popolare di Milano and SR-Boligkredit are expected to issue benchmark euro-denominated covered bonds tomorrow (Wednesday), with issuers keen to get deals done in the run-up to the summer slowdown. WL Bank sold a sub-benchmark nine year yesterday.

Euro-denominated benchmark issuance was mainly limited to SSA issuers today (Tuesday), with KfW, BNG and Lower Saxony in the market, while primary markets were quiet yesterday amid a public holiday in the UK, with the exception of a sub-benchmark Pfandbrief for WL Bank.

However, Dexia Kommunalbank Deutschland, Deutsche Bank, Banca Popolare di Milano and SR-Boligkredit will each issue their deals tomorrow subject to market conditions, according to syndicate officials at the respective leads.

“Other markets have had their day today, but it seems tomorrow will be the covered bond fiesta with as many as four trades,” said a syndicate official. “It will most likely be the busiest day in the market for some time.”

Bankers said issuers are likely keen to come to the market tomorrow to get deals done before an ECB meeting on Thursday and ahead of an expected slowdown in market activity later in June.

“The market backdrop is clearly very supportive, and these deals should be absorbed well, but windows are starting to look a bit scarcer in the run up to summer,” said another syndicate official. “If you’ve got deals to do, it makes sense to get them done sooner rather than later, so we could be in for a relatively busy couple of weeks.”

Dexia Kommunalbank Deutschland (DKD) announced a mandate for a euro benchmark public sector Pfandbrief yesterday (Monday), with leads BayernLB, Commerzbank, Crédit Agricole, DZ and UniCredit.

DKD’s public sector Pfandbriefe were on 4 May assigned a AA- rating by Scope, which is two notches higher than the programme’s only other rating, A from Standard & Poor’s.

The new issue is DKD’s first benchmark Pfandbrief since February 2015, when it sold a Eu500m March 2022 issue.

Banca Popolare di Milano announced a mandate for a seven year euro benchmark obbligazioni bancarie garantite today. Banca Akros, Barclays, BNP Paribas, Citi and Commerzbank have the mandate.

BPM’s last benchmark covered bond was a Eu500m 750m 10 year OBG in November of last year. Syndicate officials at the leads cited the issuer’s September 2022s at 36bp, mid, and December 2025s at 69bp.

Deutsche Bank AG joined the queue this afternoon, announcing a mandate for a Eu500m no-grow 10 year mortgage Pfandbrief, with leads Deutsche, DZ, HSBC, Raiffeisen Bank International and SEB.

The deal is Deutsche’s second benchmark Pfandbrief of the year, following a Eu750m eight year issue that was its first since August 2012. Deutsche issued two benchmark cédulas in the interim, through Deutsche Bank SAE, making its debut in the Spanish market in November 2015.

Syndicate officials at the leads saw Deutsche’s June 2022s at minus 6bp, mid, and March 2024s at minus 3.5bp.

SR-Boligkredit also announced a mandate today for a September 2021 euro benchmark issue, after having completed a European roadshow last week. Citi, Commerzbank, HSBC, LBBW and Nomura have the mandate. The deal will be SR-Boligkredit’s second euro benchmark covered bond of the year, following a Eu500m seven year in January, and third overall.

Syndicate officials at the leads saw the issuer’s September 2020s at 8bp, mid, and January 2023s at 15bp.

WL Bank yesterday sold a Eu250m nine year issue. Leads Deka, UniCredit and WGZ priced the deal at 3bp through mid-swaps, in line with initial guidance.

Bankers away from the leads said the deal offered a new issue premium of around 3bp, based on the bid side of WL Bank’s curve, and a pick-up of around 38bp from Bunds.