NordLB

Three issuers launched covered bond benchmarks in euros this week, down from nine in the previous week, as borrowers anticipated an improvement in market conditions and lower new issue concessions.

Global markets are looking more settled and, in spite of little supply this week, bankers suggest that a FIG market reopening trade is imminent.

Covered bonds issued this week by Nordea Finland and DNB Boligkreditt went surprisingly well as, despite being the largest ones on offer, they were the most highly oversubscribed and subsequently posted the best performance.

This week began with three small euro offerings on screens from Landsbankinn, Carrefour Banque and NordLB as investors and issuers remained defensive after a recent run of gains in equities was met with a loss on Monday.

NordLB capitalised on additional investor demand to print a €100m tap on Monday.

Rheinmetall, the German defence and car parts company, has refinanced a €500m revolving credit facility, as its beleaguered defence arm is scrutinised by Moody’s.

ING Belgium and Bawag received good receptions for their covered bonds issued this week, in contrast to less spectacular outcomes for deals from Westpac New Zealand and UniCredit.

NordLB

Norddeutsche Landesbank and Landesbank Baden-Württemberg coped well with the new rules around debt seniority for German banks this week. Both launched successful senior trades with strong, domestic-led order books after Commerzbank had struggled for demand on Monday

Landesbank Baden-Württemberg joined Norddeutsche Landesbank in the FIG market on Thursday. LBBW launched a successful floater with a strong domestic bid, reassuring the market after a lacklustre deal from Commerzbank on Monday.

Norddeutsche Landesbank coped well with the new rules around debt seniority for German banks on Wednesday, launching a cautious, but successful senior trade, which attracted a decent order book.

Barclays began marketing a multi-tranche Samurai trade on Monday, as some FIG bankers claimed European banks were still baulking at the new issue premiums being offered by US visitors to the euro market.