Banco de Sabadell offered the “juiciest” trade of the day today (Monday), but a further three transactions, including €500m deals for Deutsche Bank and RLB OÖ, also proved successful, and the fast pace of issuance is set to continue tomorrow with a fourth day of four euro benchmarks.

A syndicate banker said that all today’s transactions had performed well, indicating that covered bonds were ticking several boxes for investors amid buoyant market conditions.

“Covered bonds have proven once again to be very well appreciated by the investor base,” he said.

“The mix is optimal in terms of spread, yield, relative value versus dollars, and there is also a lot of cash around,” he said, “so those who came to the market enjoyed very supportive transactions, regardless of whether the ECB is participating or not.”

Banco de Sabadell leads Banco de Sabadell, BNP, Citi, Deutsche and HSBC went out this morning with guidance of the mid-swaps plus 24bp area for the long eight year Spanish euro benchmark. After around an hour and five minutes, books were reported as being over €2bn, including €25m JLM interest, pre-reconciliation. After around two hours and 30 minutes, guidance was revised to 18bp-20bp, WPIR and the deal size at €1bn, on the back of over €3bn orders, including €25m JLM interest, pre-reconciliation. The spread was ultimately set at 18bp on the back of over €3bn of demand at the tight end of range, pre-reconciliation.

A syndicate banker away from the leads said the “rare” issuer opened books at an appropriate price, leading to a predictably healthily oversubscribed book.

“There haven’t been any covered bonds from Sabadell since April 2017,” he said. “That’s nearly three years of absence, so obviously it’s going to be extremely well received by investors.”

Another syndicate banker away from the leads described it as the “juiciest” transaction of the day.

“No new issue concession and a €3bn-plus book – fantastic,” he said.

A syndicate banker at one of the leads said the trade performed very well. She saw fair value at 20bp over, based on Sabadell’s outstanding April 2026 paper trading at 18bp.

Deutsche Bank leads Deutsche, Banca IMI, Commerzbank, DZ and ING this morning went out with guidance of the mid-swaps plus 10bp area for a €500m no-grow 10 year transaction, and after around an hour and 15 minutes, guidance was revised to 6bp+/-1bp, WPIR, on the back of books in excess of €1.6bn, including €50m JLM interest. After around an hour and 40 minutes, the spread was set at 5bp on the back of over €2bn of demand, including €50m JLM interest.

A syndicate banker at one the leads said that after opening books at around 8.45am CET, the trade received over €1bn of demand in around 40 minutes, which she said was particularly fast for a Monday morning.

“This time of the week is typically a bit slower,” she said, “because people are having internal meetings, but this didn’t have any sort of impact whatsoever.”

She said that the mortgage Pfandbrief was priced flat to fair value, based on Deutsche’s outstanding 2029 paper trading at 4.5bp.

“Adjusting for a few months of the curve brought us to plus 5bp,” she said.

Raiffeisenlandesbank Oberösterreich (RLB OÖ) leads DekaBank, DZ, Erste, RBI and UniCredit went out with guidance of the mid-swaps plus 11bp area for the Austrian €500m no-grow 15 year transaction. After around an hour and 10 minutes, books were reported as being over €925m, including €65m JLM interest, and after around two hours and 10 minutes, the guidance was revised to 8bp+/-1bp, WPIR, on the back of over €1.2bn demand, including €65m JLM interest. The spread was ultimately set at 7bp, on the back of over €1.15bn of demand, including €65m JLM interest.

A syndicate banker away from the leads said the transaction had performed well, considering it was only the issuer’s third covered bond and the relatively small investor base available to it.

“These small Austrian names are never going to have a €2bn book,” he said. “Not all the investor community has lines open for RLB OÖ, so getting a €1.1bn book was still pretty strong.”

A syndicate banker at one of the leads noted RLB OÖ’s trade was almost a carbon copy of a €500m no-grow 15 year transaction from compatriot RLB NÖ-Wien on Tuesday, even if its order book was slightly smaller.

“Both deals started at 11bp, moved to 8bp+/-1bp, WPIR, and then printed at 7bp as well,” he said, “so they’re pretty similar.”

A €1.5bn seven year for Royal Bank of Canada (see separate article) made it four euro benchmarks today, following four on each of the euro markets first two days of activity on Tuesday and Wednesday of last week, and a further four issuers today announced mandates for deals that are expected to hit the market tomorrow, subject to market conditions.

BPCE SFH is planning a dual-tranche issue, split into long eight year and 15 year tranches, via Commerzbank, Crédit Agricole, DZ, Natixis, NatWest, Nordea, NordLB and Santander. According to comparables circulated by the leads, BPCE September 2027 to 2029 secondaries were trading at 4bp-4.5bp over, mid, while its 2031s were at 6bp.

Axa Bank Europe SCF is set to launch a long seven year euro benchmark via BNP, Commerzbank, HSBC, ING and Natixis have the mandate. Deutsche Pfandbriefbank AG (pbb) has mandated Commerzbank, Crédit Agricole, Danske, DekaBank and DZ for an eight or nine year mortgage Pfandbrief.

And UniCredit Bank Austria is expected with a €500m no-grow long 10 year mortgage Pfandbrief. ABN Amro, Deutsche, DZ, RBI and UniCredit have the mandate.