29 September 2016
The new HTT (available here) will be applicable to all Covered Bond Label issuers as of the end of Q1 2017.
The HTT is a transparency-enhancing market initiative developed by the Covered Bond Label Foundation for the disclosure of cover pool information in a standardised way at global level. As of the 1st of January 2016, it is mandatory for all new labelled issuers to comply with the requirements of the 2016 Covered Bond Label Convention (available here), which entails publishing the HTT in order to disclose the relevant data. The approval of the enhanced HTT for 2017 took place at the most recent Covered Bond Label Committee meeting in Düsseldorf earlier this month.
The HTT plays a pivotal role in the Covered Bond Label’s efforts to keep pace with current and prepare for future regulatory requirements by allowing for a cross-border comparison of data in a centralised way and a comparable format. The Covered Bond Label platform presents a complete set of data directly linking every covered bond to the legislative framework under which it is issued and to the cover pool’s assets. Moreover, it facilitates investors’ due diligence by offering three dimensions in one single entry point: liability, regulatory and asset transparency.
Commenting on the approval of the new HTT for 2017, Luca Bertalot, Covered Bond Label Foundation Administrator, said:
“The enhanced version of the HTT sends two important messages: firstly, that market-led initiatives can play an important role in concretely enhancing transparency in the covered bond space; and secondly, that when required by market participants, the Covered Bond Label is able to refine, on a regular basis, its quality standards in order to meet the latest needs and expectations of issuers, regulators and investors. In doing so, the Covered Bond Label represents a dynamic qualitative benchmark for the market.”
Information on all Covered Bond Label issuers as well as more information regarding the Covered Bond Label itself can be found at www.coveredbondlabel.com.
The European Covered Bond Council (ECBC) is the platform that brings together covered bond market participants including covered bond issuers, analysts, investment bankers, rating agencies and a wide range of interested stakeholders.
