CM-CIC attracted EUR1.5bn of orders to a EUR1bn eight year covered bond today (Wednesday), sealing a “fair” price even after a bookbuild deemed relatively slow. Pbb became the latest German issuer to tap its Pfandbriefe, adding EUR250m to a September 2022 issue.

Leads Credit Suisse, Morgan Stanley, Natixis and SG launched Crédit Mutuel CIC Home Loan SFH’s new issue with guidance of the mid-swaps minus 6bp area. Guidance was later revised to the minus 8bp area, plus or minus 1bp, with books in excess of EUR1.1bn. The spread was subsequently set at minus 9bp and the size at EUR1bn, with books at EUR1.5bn.

“It’s a solid result, getting EUR1bn printed just 1bp back of the level of those recent eight years for some of the tighter French names,” said a syndicate banker away from the leads.

The new issue is the sixth euro benchmark covered bond from France since the turn of the year, and the third with an eight year maturity, following a EUR1.25bn long eight year for Crédit Agricole on 8 January and a EUR1bn straight eight year for Caffil on 9 January. Both trades were priced at 10bp through mid-swaps and seen at around minus 12bp-11bp today.

CM-CIC’s deal was deemed to have offered a new issue premium of around 4bp versus the issuer’s curve, with bankers seeing CM-CIC April 2026s at around minus 13bp, mid.

“They perhaps started a little conservatively with the price, but in the end minus 9bp is a fair level that still leaves something on the table for investors,” said another syndicate banker.

Some bankers away from the leads noted that the deal had progressed relatively slowly, in line with some other recent core CBPP3-eligible trades.

“It follows the bookbuilding pattern seen in some of the tighter Eurozone trades,” said one. “We have seen a lot of French supply already this year, but I would not say we have reached a tipping point and I don’t think it is because of fatigue on the investor side.

“I think it is again a question of price sensitivity, and some investors just finding some of these core Eurozone trades too tight.”

Deutsche Pfandbriefbank’s EUR500m September 2022 issue was reopened this morning with guidance of the mid-swaps minus 17bp area, for a minimum tap size of EUR100m. The spread was later fixed at minus 18bp and the size at EUR250m on the back of a EUR370m book.

The original issue was priced at minus 10bp on 29 August.