Weekly Global Roundup (July 31)

Official notice filed in connection with a request by Compagnie de Financement Foncier (CFF) in U.S. ... Australian securitization group decides to push government to permit covered bond issuance there ... Kookmin Bank loses millions in hedging related to its May covered bond issue.

Some items of covered bond news do not rate their own story in this publication—often because they relate to geographic areas outside our focus, North America.  Even so, readers who want to keep up with covered bond news in general might find them interesting.  Here is this week's roundup, linked to various online sources.

Note:  For links to a rating agency site, you will need to log in (free) at the site before clicking the link.  For links to Factiva and some online publications, you may need to have a subscription.

AUSTRALIA

As a key strategy in its effort to revitalize the domestic Australian securitization market, the Australian Securitization Forum will try to introduce covered bonds there, Australia's The Sheet reported Monday (July 27).  Previous efforts have been unsuccessful against government resistance. 

CYPRUS

In the context of announcing preparations for a securitization, Bank of Cyprus' general manager for risk management said he hoped the government will proceed promptly in September with its commitment to enact covered bond legislation, so as to allow fresh liquidity in connection with the bank's mortgage loan portfolio, the Cyprus Mail reported Sunday (July 25).

FRANCE

A Notice of Application dated July 22, concerning a request by Compagnie de Financement Foncier (CFF) for an order exempting CFF from all provisions of the (U.S.) Investment Act of 1940 in connection with the offer and sale of its securities in the U.S., appeared in the Federal Register Tuesday (July 28).  "CFF proposes to offer and sell in the United States its covered bonds and other debt securities.... CFF states that any such offer and sale shall occur only in transactions exempt from registration under the Securities Act of 1933 ('1933 Act'), including transactions effected as traditional private placements with institutional investors or in transactions in which the securities may be resold to 'qualified institutional buyers' as contemplated by rule 144A under the 1933 Act." The complete text of CFF's application for exemption, as amended June 22, 2009 is available at:
http://www.sec.gov/Archives/edgar/data/1445545/000119312509134825/d40appa.htm.

PORTUGAL

The obrigações hipotecárias (legislative mortgage covered bonds) issued by Caixa Económica Montepio Geral under its mortgage covered bond program were assigned definitive long-term ratings of Aa1 by Moody's Investors Service Tuesday (July 28).

SOUTH KOREA

In conjunction with Kookmin Bank's sale in May of $1 billion worth of five-year covered bonds in May, the bank incurred losses of 95 billion South Korean won (roughly USD $77 million) related to currency hedging, according to an announcement Thursday (July 30).

SPAIN

Fitch Ratings announced Thursday (July 30) that the agency will no longer provide rating or analytical coverage of Caixa d'Estalvis de Catalunya (Caixa Catalunya) or its cédulas hipotecarias (legislative mortgage covered bonds).