UniCredit took some Eu900m of orders for a Eu750m nine year Pfandbrief today (Tuesday), while Deutsche Pfandbriefbank printed a $600m three year on the back of over $700m of orders, both tightening spreads only modestly but taking “respectable” sizes out of the market.

After announcing a mandate yesterday (Monday) afternoon, UniCredit leads BayernLB, DZ Bank, LBBW, NordLB and UniCredit launched the nine year mortgage Pfandbrief with guidance of the 9bp through mid-swaps area this morning.

After just over one hour and 10 minutes, the leads announced that they had taken over Eu500m of orders, excluding joint lead manager interest. The spread was 45 minutes later fixed at minus 10bp, with order books above Eu600m, before the size was fixed at Eu750m with the book closing at Eu900m, including Eu40m of JLM interest.

“The book build seemed a bit sluggish at the start, and from there I’d guess that they chose to push the size beyond Eu500m rather than tighten the spread closer to the curve,” said a banker away from the leads. “Just 1bp of tightening is a pretty modest move compared to what we’re used to, but in the end Eu750m at minus 10bp is a respectable result, and is well covered by the final book.”

Bankers said the deal offered a new issue premium of around 2bp, seeing UniCredit July 2023s at minus 15bp, mid, April 2024s at minus 14bp, and February 2025s – its longest dated outstanding – at minus 13.5bp.

The leads also cited as comparables 2026 paper from WL Bank, DG Hypothekenbank and MünchenerHyp, all at minus 15bp-14.5bp, and Commerzbank, at minus 12.5bp.

Deutsche Pfandbriefbank (pbb) leads BayernLB, Citi, Deutsche, DZ and Goldman Sachs launched the German issuer’s Reg S mortgage Pfandbrief with initial price thoughts of the 57bp over mid-swaps area this morning.

After around one hour and 15 minutes, guidance was set at the 56bp area on the back of books above $500m. The spread was later fixed at 55bp and the size at $600m (Eu553m) with books in excess of $700m.

“Pbb’s approach seems similar to HVB’s in that they didn’t push the price as much as they might have,” said a syndicate banker. “It’s a prudent approach.”

Another banker agreed.

“$600m is around the average size for these Eurodollar trades but it’s a good result nevertheless,” said a syndicate banker away from the leads. “It bodes well to see Reg S trades getting done and finding consistent demand.”

Pbb’s last benchmark US dollar Pfandbrief was a $500m three year debut in August 2016, which it tapped by $100m in January.

The deal was deemed to have offered a new issue premium of 2bp-4bp, with bankers citing pbb August 2019s at 48bp, mid, pre-announcement. They also cited LBBW May 2019s at 29bp, BayernLB August 2019s at 33bp and Helaba August 2020s at 40bp.

“It’s a pretty slim concession for a name that isn’t exactly a regular in the dollar market,” said a banker away from the leads.

Bankers said pbb had paid up to access the dollar market, estimating that an equivalent euro benchmark would have been priced with a substantial saving for the German issuer, but noted that it would have been challenging to print such a short dated deal in euros, given that it would have been priced with a negative yield.

Pbb’s euro-denominated 2019-2020 paper was seen trading between minus 14bp and minus 11bp.