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REYKJAVIK - Landsbankinn hf., an Icelandic financial institution, has successfully completed a covered bond auction, accepting bids for two separate series. The auction occurred on Monday, with the settlement date set for May 20, 2025.
In the first series, LBANK CB 29, the bank received six bids totaling ISK 2,880 million with yields ranging from 7.51% to 7.56%. Landsbankinn accepted ISK 1,980 million at a yield of 7.52%. This issuance increases the total amount in the series to ISK 19,560 million.
The second series, LBANK CBI 31, also attracted six bids, amounting to ISK 2,460 million with yields between 3.57% and 3.60%. The bank accepted all bids at the highest yield of 3.60%, bringing the total issued in this series to ISK 10,840 million.
Arion banki, Islandsbanki, and Kvika are the market makers for Landsbankinn’s covered bonds. These financial instruments have been rated A+ with a stable outlook by S&P Global Ratings, indicating a strong degree of confidence in the bank’s creditworthiness.
Covered bonds are debt securities backed by cash flows from mortgages or public sector loans. They are typically seen as a secure form of investment due to the dual recourse provided to bondholders, offering both the bank’s promise to pay and the collateral backing the bonds.
Landsbankinn issues its covered bonds in compliance with Icelandic regulations, specifically act no. 11/2008 and the Financial Supervisory Authority’s (FME) rules no. 190/2023. Detailed information about the bonds and the cover pool is available on the bank’s official website.
The announcement of the auction results is based on a press release statement from Landsbankinn hf. and is considered to contain information that may have been deemed inside information under Article 7 of the Market Abuse Regulation (EU) 596/2014. Hreiðar Bjarnason, Chief Financial Officer for Landsbankinn hf., is responsible for the release of this information.
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