Stadshypotek is set to sell its first covered bond out of a Finnish cover pool tomorrow (Tuesday), with the Swedish issuer holding an investor call today ahead of a Eu500m 10 year issue, while Singapore’s DBS is assessing feedback ahead of an awaited euro debut, amid a choppy start to the week.

Stadshypotek’s deal has been on the cards since Moody’s in April assigned a provisional Aaa rating to covered bonds issued out of a Finnish cover pool comprising mainly residential mortgages but under Swedish legislation.

The issuer announced a mandate today (Monday) for a Eu500m no-grow 10 year issue, and this morning held a global investor call. The deal is expected to be launched tomorrow subject to market conditions, according to a syndicate banker at one of leads Barclays, Deutsche and Handelsbanken.

The lead banker said the issuer held the call to establish whether investors would require more time to evaluate the collateral, and will assess feedback this afternoon.

“But from my perspective, this is the same entity, the same rating and the same curve,” he added, “so I wouldn’t expect that accounts need much time to get this on their investment list.”

The banker official noted that the deal will be ECB repo-eligible but – unlike Finnish covered bonds – not CBPP3-eligible, being from a Swedish entity, and said he does not expect a substantial differential in pricing versus Stadshypotek’s Swedish mortgage-backed issuance.

The leads cited outstandings from Stadshypotek’s Swedish pool as the most relevant comparables, with its February 2023s at minus 5.8bp, mid, June 2022s at minus 5.3bp, and November 2021s at minus 8bp.

Stadshypotek has previously issued covered bonds backed by a Norwegian cover pool, alongside that off its domestic Swedish cover pool.

DBS Bank on Friday completed an investor roadshow ahead of a potential debut euro-denominated covered bond. DBS, Deutsche, JP Morgan, Société Générale and UniCredit have the mandate.

A syndicate official at one of the leads said the issuer is now assessing feedback from investors, and said the deal may not necessarily be launched in the coming days.

“We are not in a rush,” he said, “and today is not the best market anyway.”

Bankers noted that wider markets had got off to a soft start to the week this morning, with European equities down around 1.5% and European banks particularly hard hit – with Deutsche Bank shares falling some 6% to a record low.

“It’s a choppy morning,” said a syndicate official, “and certainly not one that will tempt people to rush into the market.”

However, syndicate bankers still expect issuers to enter the covered bond market, adding that issuance could increase over the next two weeks because many issuers are set to enter blackout periods from the week commencing 10 October.

Bank of Nova Scotia sold a £200m (Eu231m, C$341m) five year floating rate note on Friday. Leads BNS and Credit Suisse launched the deal with the price set at 38bp over three month Libor.

The new issue was the third benchmark covered bond from the Canadian issuer this month – following a £500m five year fixed rate issue on 7 September and a $1.25bn (Eu1.11bn, C$1.65bn) five year on 13 September.