Italian Jumbo covered bond volume has dropped significantly this year. Year-to-date 2012 volume in the sector has hit $922 million, which comes after the record $21.4 billion issued in 2011 year-to-date, according to Dealogic.

European Jumbo covered bond volume has also dropped and now stands at $91.7 billion, a dip of 53% versus the record $194.6 billion issued in 2011 year-to-date, the data provider stated.

Barclays tops the 2012 year-to-date European Jumbo covered bond bookrunner ranking with a 10.1% market share, Dealogic reported. Meanwhile, BNP Paribas and Natixis follow with 8.1% and 7.6%, respectively.

Landmark Transaction

UniCredit has completed the first Italian Jumbo covered bond for this year. On Aug. 14, the firm priced a €750 milion ($922 million) euro-denominated Jumbo covered bond.

The note was issued under a Obbligazioni Bancarie Garantite framework. It also marks the first Jumbo covered bond of 2012 from an Italian issuer, according to Dealogic.

The bond was priced at 97.5 basis points below Italian government debt, which makes it the first Italian Jumbo covered bond ever to be priced lower than a benchmark.

Credit Agricole CIB, Natixis, SG Corporate & Investment Banking and UniCredit were the bookrunners on the 'AA'-rated transaction.

 

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.