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FI CommentSCBC to introduce a new SEK covered bond

  1. The Swedish Covered Bond Corporation (SCBC) will introduce 144
  2. The coupon is 1%; ISIN SE0011167428
  3. Pricing 23bp over swap, matched maturity
SCBC introduces 144
SCBC is SBAB’s mortgage lending institute. SBAB is 100% owned by the Swedish state and its core business is mortgage lending in Swedish kronor to households, companies and tenant-owner associations. SCBC will in the near future, subject to market conditions, introduce a new SEK covered bond, 144. This new bond will be introduced with the ambition to fast reach benchmark status (SEK 5bn).
Maturity June 21, 2023. Coupon 1.0%. ISIN SE0011167428
SCBC will introduce 144 with a coupon of 1.00% in the near future, given appropriate market conditions. Maturity is June 21, 2023, so it is about five years maturity at issue.
Indicative pricing at 23bp over swap, matched maturity
We estimate the 144 to be priced at 23bp over swap, matched maturity. Pricing is based on market conditions as of May 5. 144 will have the second longest maturity on the Swedish covered bond benchmark curve. The 144 will land between SCBC 143 with a maturity in June 2022 and SCBC 147 with a maturity in June 2026.


Source: Macrobond

Disclaimer

Kiran Sakaria

Junior Strategist

Foreign Exchange and Fixed Income

kisa02@handelsbanken.se

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