Covered bond markets in a range of currencies are open for issuance this week despite few signs of borrowers lining up, said syndicate bankers this (Monday) morning, with overall supply for what has traditionally been a busy month looking set to disappoint.

Market participants said euro investors were awaiting more supply this week.

“I don’t have any hints as to who will do something,” said a syndicate official. “The market is very happy and investors are cash rich, so what we are missing are the borrowers.”

Another said last week was quite good in terms of supply, with the sterling and dollar market accessed as well as euros. But he added that a lot of issuers have already funded themselves very well for the year.

A banker said that he saw no reason why the market couldn’t absorb as much issuance as last week.

“Data-wise there is next to nothing,” he said. “It’s a very clear week.”

Swedish financial institutions have ventured outside their domestic market recently in dollars and euros, and also in senior unsecured format, and a banker said that Länsförsäkringar Hypotek could approach the market in the coming weeks. LF Hypotek last launched a benchmark covered bond in June 2011, a Eu1bn three year at 28bp over mid-swaps.

Another banker suggested more dollar supply would follow Friday’s Swedbank Hypotek five year US dollar covered bond.

“The dollar looks like it could be next,” he said.

And he expected more longer term issuance.

“Ten year yields have backed up quite a lot,” he said. “We should start seeing longer euros.”

DNB Boligkreditt issued a Eu2bn 10 year benchmark last Tuesday and BNP Paribas Home Loan SFH priced a Eu1bn 10 year on Thursday.

Last week brought the euro issuance total to Eu7bn for March, according to RBS, a month it said is traditionally a very heavy one for covered bond supply.

“Since 2002 covered bond supply in March has averaged 10% of full year supply,” it said, adding that this year’s March supply compares with Eu27bn for the full month in each of the last two years.

“This lower number in part reflects the unattractiveness of covered bond funding relative to the cheap LTRO money at 1%,” it said. “As such banks that participated in one or both of the two ECB transactions are less inclined to come to the market as often as before, particularly at the short end of the curve.”