Covered Bonds

Highlights

• 12 Mar 2013
  • Finland’s legal framework for covered bonds
    We discuss key features of the covered bond legal framework in Finland in this third in a series of reports. These reports offer our credit perspective on the strength of each legal feature relative to a typical covered bond legal framework, and we use this common benchmark so that readers can meaningfully compare the reports across jurisdictions... Full Report
• 5 Mar 2013
  • New regulations support Swedish covered bonds
    New regulations published on 21 January support the framework for Swedish covered bonds as a safe and effective funding instrument. Covered bonds are a key element in the infrastructure of Swedish housing finance, as Swedish banks rely heavily on covered bond funding... Full Report
• 19 Feb 2013
  • New ECB Repo Rules are Credit Negative for Cover Pools Containing ABS Assets
    According to the new guidelines, cover pools containing ABS assets can no longer serve as collateral for covered bonds used in ECB repo transactions. The change in repo eligibility is credit negative because it will reduce the purchase prices of cover pools containing ABS assets, should the pools need to be sold. This increase in refinancing risk affects the value of all ABS assets in cover pools, including those originated within the issuer group. We also note that the change in repo eligibility might prompt issuers to gradually restructure their programmes in order to maintain repo eligibility and contain issuance spreads... Press Release l Full Report​