Erste leads way in updated covered BondMarker

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incorporated in England and Wales (company number 15236213),

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Erste leads way in updated covered BondMarker

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Erste Group issued the best covered bond in January according to GlobalCapital’s newly updated BondMarker — which is now derived from facts, as opposed to survey-based opinion.

With a leading score of nine, out of a total possible mark of 10, Erste Group’s €750m 10 year has the highest score of any covered bond issued this year, based on BondMarker which is a fully automated scoring system developed by GlobalCapital

The transaction was subscribed 5.6 times, attracted 100 investors and performed by 2bp the week after launch.

In second place with a score of 8.88 is Crédit Agricole Italia’s €750m 25 year, a transaction that was two times subscribed, attracted 80 investors and performed by 3bp the week after launch.

Other notable deals included Santander UK’s €1.25bn seven year and CRH’s €750m 15 year, which both scored 8.76. UniCredit’s €1.25bn 12 year and Belfius Bank’s 10 year were also notable — being among five well subscribed, performing deals that attracted 100 investors or more

The best arrangers — as defined by the covered BondMarker league table — were Natixis, Santander and UniCredit. This league table ranks banks on the average covered BondMarker score of all deals they worked on.

Natixis worked on 10 deals with an average BondMarker score of 8.37, Santander worked on five deals with an average score of 8.36 and UniCredit worked on six deals with an average score of 8.32.

The covered BondMarker has been updated and no longer takes account of market opinion that had been collected via a survey. 

It is now derived purely from a completely transparent mathematical formula that is applied to all euro benchmark deals.

This takes account of a deal’s size, its subscription ratio, performance a week after launch and order book’s granularity. 

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