Crédit Mutuel and Argenta Spaarbank were just the latest issuers to hit the high end of size expectations without compromising on price today (Tuesday), after DNB yesterday sold the largest euro benchmark covered bond yet this year, while DZ Hyp is expected with further supply tomorrow.

Crédit Mutuel Home Loan SFH’s new issue was announced yesterday (Monday) morning and leads CIC, Commerzbank, Danske and Natixis this morning went out with initial guidance of the mid-swaps plus 72bp area for the euro benchmark-sized July 2032 issue, expected ratings Aaa/AAA/AAA (Moody’s/S&P/Fitch). After around an hour and a quarter, they reported books above €3bn, excluding joint lead manager interest, and after around two and three-quarter hours, they set the spread at 63bp on the back of books above €4.75bn. The deal was ultimately sized at €1.5bn – the top end of Crédit Mutuel’s target range – with the final book above €4.6bn, including €125m of JLM interest.

“The announcement yesterday morning was just to plant a flag in the sand, rather than because feedback was very necessary, and investors were truly ready to engage from the word ‘go’ this morning,” said a syndicate banker at one of the leads. “What was notable for us was the diversity of accounts involved – you could say that covered bonds from the French jurisdiction appeal to more investors than before, for example, among asset managers and pension funds.

“And it was a very solid order book – that was proven by the fact that there was negligible attrition.”

He said the success of other French issuance in the same part of the curve had given them confidence regarding demand for the new issue, noting that further along the curve French issuers would have to pay up due to the steepness of the OAT curve. The new issue was ultimately priced at 1bp through OATs, which had tightened 1bp since the deal’s announcement.

According to pre-announcement comparables circulated by the leads, Crédit Mutuel March 2032s were trading at 65bp, mid, and its February 2033s at 66bp. BPCE March 2032s and Arkéa January 2032s issued last week were at 62bp and 60bp, respectively, after having been re-offered at 65bp and 60bp. The lead banker today put fair value at 65bp, implying a new issue premium of minus 2bp following the 9bp of tightening.

“I wouldn’t say the starting point was generous,” he added. “We generally saw spread travels of 6bp-8bp last week, so if we had priced at fair value, we would have been in the middle of that.”

Following a mandate announcement yesterday, Argenta Spaarbank leads ABN Amro, Belfius, LBBW and Natixis opened books this morning with guidance of the mid-swaps plus 63bp area for the euro benchmark-sized February 2032 mortgage Pandbrieven, expected rating AAA (S&P). After a little over an hour, they reported books above €2.5bn, excluding JLM interest, and after around two hours and 20 minutes, they set the spread at 55bp and size at €1bn on the back of books above €3.3bn. The final book was above €2.5bn, including €75m of JLM interest.

The €1bn deal is the Belgian bank’s largest euro benchmark, following issuance of €500m deals from 2021 to 2023 and then two €750m covered bonds last year, each in green format.

“The issue went well, no doubt about it,” said a syndicate banker, who saw the deal coming roughly flat to fair value.

Argenta February 2034s were trading at 60bp, mid, according to pre-announcement comparables circulated by the leads, while ING Belgium February 2031s were at 45bp.

The deal was the first Benelux euro benchmark of the year, and followed the first Nordic of the year yesterday, when DNB Boligkreditt issued the largest benchmark yet in 2025, a €1bn five year.

Leads BMO, DNB, Helaba, HSBC, LBBW, UBS and UniCredit built a peak book of some €5.75bn and final book above €5.5bn and tightened the Norwegian’s spread from the 55bp area to 36bp, implying a new issue premium of up to minus 2bp.

“This was a phenomenal transaction,” said a banker at one of the leads. “The strength of demand gave the issuer options on size and spread so it could upsize and squeeze on price.”

He noted that DNB’s deal is the tightest five year yet in 2025 – the previous tightest was LBBW’s February 2030.

“We believe this was also the fastest bookbuild of the year,” added the banker, “with €3bn in 45 minutes and €5.5bn after an hour and a half.

“It captures quite nicely the strength of the covered bond market at the moment. It feels like the days of old, with the book sizes and moves we are seeing.”

Yorkshire Building Society meanwhile issued a €600m five year yesterday at 42bp, tightened from 48bp on the back of a final book of some €1.95bn of demand and with a basis point or two of new issue premium, bankers said. BMO, BNP Paribas, NatWest, Santander and UBS were leads.

DZ Hyp is expected tomorrow (Wednesday) with a seven year mortgage Pfandbrief after a mandate announcement this morning. CIBC, Danske, DZ, Erste, Natixis and NordLB are leads.

According to pre-announcement comparables circulated by the leads, DZ Hyp April 2031 public sector Pfandbriefe were quoted at 38bp, mid, and May 2032 mortgage Pfandbriefe at 39bp. Of this year’s German supply, Commerzbank December 2029s and LBBW February 2030s were both seen at 32bp, after having been re-offered at 36bp and 40bp, respectively, while Bausparkasse Schwäbisch Hall (part of the DZ group) January 2031s were at 34bp, in from 40bp.