Santander, BBVA, Sabadell and Kutxabank have placed mortgage bonds worth €9.5 billion so far in 2026. This is the highest figure since 2016.
According to Expansión, Santander, BBVA, Sabadell and Kutxabank have issued €9.5 billion in mortgage bonds this year, which is 245% more than the total for 2025. The issuances far exceed the forecasts with which the banks started the year.
The volume contrasts with recent years. In 2021, there was only one issuance, from Eurocaja Rural for €700 million, and in 2024 and 2025, it did not exceed €3 billion. Between 2002 and 2016, issuances were never below €10 billion annually, and in 2006, they nearly reached €73 billion.
Santander estimated at the beginning of the year that it would only need to issue between €500 million and €3 billion. It has already accumulated €4.75 billion, more than half of the total for the sector.
BBVA did not consider mortgage bonds in its initial financing plan for 2026 and had not issued in 2024 or 2025. It now totals €2.25 billion and is the second-largest issuer of the year.
Sabadell announced at the beginning of the year that it would be an "opportunistic" issuer, without specific figures. So far, it has made two placements, both with mortgage guarantees, totalling €1.25 billion. The entity has resources following the sale of TSB to Santander.
Kutxabank recently closed a deal for €750 million. According to historical data from Dealogic, with this, the sector reaches the highest volume issued since the €14.12 billion in 2016.
Costs are low. Entities are placing bonds with spreads of between 14 and 30 basis points over the midswap, depending on the term, compared to 70 to over 100 basis points for senior bonds. The midswap has risen due to the tightening of the European Central Bank's monetary policy, making this product more attractive to investors.
The need for liquidity also drives issuances. Santander, BBVA, and Sabadell are lending more than expected, raising their resource needs. In recent years, that liquidity mainly came through more expensive issuances that banks made to meet crisis debt requirements. Now, with those cushions already filled, they only need to refinance them and turn to mortgage bonds, the cheapest available source of financing.
Mortgage bonds are guaranteed by each bank's mortgage portfolio, and according to published information, there has never been a default.
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