COVERED WEEKLY: BPCE SFH alone as key events cap supply
With the US election, as well as BoE and FOMC decisions this week, covered activity was limited to just EUR1bn thanks to a Monday deal from French issuer BPCE SFH – the first supply to arrive this month.
Over the past five years, IGM records show an average of EUR10.94bn being printed in November.
The year-to-date figure now stands at EUR156.25bn, lagging EUR36.5bn behind 2023’s YTD total.
Summary of this week's EUR supply
| Date | Issuer | Amount (EUR m) | Maturity | IPTs/Initial Guidance | IPTs to Pxd | Swap Spread | Book Size (EUR m) | XCVRD | NICs | Peak Books (EUR m) |
| 2024-11-04 | BPCE Societe de Financement de l'Habitat (BPCE SFH) | 1,000 | 2030-02-12 | m/s+50a | -4 | 46 | 1,300 | 1.3 | 2 | 1,650 |
Investors showed solid appetite for BPCE SFH’s Feb-2030 OFH, with the orderbook peaking at EUR1.65bn on the back of m/s +50a guidance. However, as the size was set and the spread was tightened to m/s +46 (leaving a 2bp NIC on offer), demand fell to a final EUR1.3bn.
This comes just a week after La Banque Postale SFH’s similar EUR1bn Oct-2030 Social OFH. A final and peak EUR2.1bn orderbook allowed for a 5bp refinement from guidance (2bp NIC).
Next week’s prospects
With the issuance window now open again, some issuers may look to resume activity, particularly those aiming to secure funding before year-end. However, given recent spread widening, some may stay away until market conditions improve.
There were no new mandate announcements this week, leaving just Bendigo & Adelaide's benchmark long 5yr in the pipeline which has been there since June.
Recent benchmark euro covered deals:
| Ticker | ISIN | Issue Size (m) | Coupon, Maturity | Reoffer Spread | Current (Mid) i-Spread | Ratings (M/S&P/F) |
| BPCECB | FR001400TWB1 | 1000 | 2.75%, Feb-2030 | m/s +46 | +49 | Aaa/AAA/-- |
| LBPSFH | FR001400TR51 | 1000 | 2.75%, Oct-2030 | m/s +45 | +48 | --/AAA/-- |
| BNPPCB | FR001400TNF1 | 500 | 2.519%, Oct-2027 | m/s +22 | +21 | --/AAA/AAA |
| MUNHYP | DE000MHB40J0 | 500 | 2.625%, Feb-2031 | m/s +28 | +32 | Aaa/---/-- |
| CFF | FR001400TM31 | 500 | 2.625%, Oct-2029 | m/s +41 | +44 | Aaa/AAA/-- |
| LBBW | DE000LB4W514 | 500 | 2.375%, Oct-2028 | m/s +22 | +24.5 | Aaa/---/-- |
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