Press release

ECBC publishes 2021 Edition of European Covered Bond Fact Book

Brussels, 7 October 2021 – For immediate release

The European Covered Bond Council (ECBC) is pleased to announce the publication of the 16^th (2021) edition of its European Covered Bond Fact Book, which builds upon the success of previous editions to cement its place as the definitive source of information in terms of market, regulatory and legislative developments and statistical data on the covered bond asset class.

The European Covered Bond Fact Book 2021, featuring the latest covered bond statistical data as of end 2020, can be downloaded from the ECBC website here. On Tuesday, 26 October at 12h00 (CEST), a number of contributing authors, who are amongst some of the world’s leading covered bond experts, will present the key highlights of this year’s edition during the Euromoney/ECBC Covered Bond Congress Roadshow event in Munich, Germany. For more information on this event, click here. Furthermore, as we did in 2020, we would also like to host a special virtual publication event on Wednesday, 10 November 2021 at 10h00-12h00 (CET), the purpose of which is to give the chance to all prospective readers to get insights directly from the contributing authors.

With over EUR 2.9 tn outstanding at the end of 2020, covered bonds continue play a key role in European capital markets, contributing to the efficient allocation of capital and, ultimately, to economic development and recovery. The EUR 612 bn of issuance during 2020 evidences the ability of the asset class to provide essential access to long-term capital market funding. The consistently strong performance of covered bonds and their quality features attract the attention of regulators and market participants worldwide, which, in turn, leads to the increasing recognition of the macro-prudential value of the asset class. Furthermore, covered bonds are fast becoming a key financial instrument to tackle the environmental challenges of our time and enable the green transition in many countries. In light of the growing importance of green finance, the ECBC Secretariat collected this year, for the first time, figures on covered bonds used specifically for sustainability-related objectives, aiming to assess the size of this emerging market. Results show that aggregated outstanding sustainable covered bonds levels stood at around EUR 33 bn in 2020, while overall issuance volumes reached a significant EUR 10 bn.

The 2021 edition of the Fact Book features the following content:

• Chapter I presents an analysis of twelve key themes of the year, offering an overview of the Industry’s perspective on these, such as the latest developments on the impact of COVID-19 pandemic as well as the ECB consequent responses put in place, and an analysis of covered bonds gaining a stronger global footing.
• Chapter II provides a detailed explanation of covered bond fundamentals, the state of play on the latest implementations of the Covered Bond Directive and of Basel III, the Capital Markets Union (CMU), the Liquidity Coverage Ratio (LCR), Solvency II, bail-in mechanisms (MREL and TLAC), and covered bond protection. This chapter also includes articles outlining the repo treatment of covered bonds by central banks, investigates the relationship between covered bonds and other asset classes, such as senior unsecured and government bonds, and describes the USD, GBP and domestic currency denominated covered bond markets.
• Chapter III presents an overview of the legislation and markets in 42 different countries, demonstrating the worldwide success and recognition, and the continued spread of the asset class.
• Chapter IV sets out credit rating agencies’ various covered bond methodologies.
• Chapter V provides a description of trends in the covered bond market, as well as a complete set of covered bond statistics up to the end of 2020.

With regard to the covered bond market statistics for 2020, the ECBC is pleased to confirm that these are now available via the ECBC website here and a short video introduction of the statistics by the Chairman of the ECBC Statistics & Data Working Group, Mr Joost Beaumont, can be found on our YouTube channel. The ECBC data covers market developments over the past 17 years for 34 different countries.

The ECBC welcomes the broad range of views expressed in this latest revision of the Fact Book and thanks all contributors whose enthusiasm and dedication have once again produced an outstanding publication. Particularly, we would like to express our gratitude to the Chairmen of the ECBC Fact Book and Statistics & Data Working Groups, Mr Sascha Kullig and Mr Joost Beaumont, respectively.

Commenting on the publication of the 2021 Edition of the ECBC European Covered Bond Fact Book, EMF-ECBC Secretary General, Luca Bertalot, said:

“In the context of the COVID-19 pandemic, which has influenced every aspect of life over the past 18 months, now more than ever the Fact Book represents the backbone of the ECBC’s activities. During this period, the ECBC has sought to play a proactive role as the Industry’s think-tank leading the monitoring of and reflections on the impact of the pandemic in the covered bond market. As always, the Fact Book looks to highlight not only the latest developments but also the core fundamentals that have made covered bonds the most traditional yet innovative asset class in the European financial landscape. The articles and statistics capture the key trends in and drivers of these radical changes which represent a major challenge for all market participants and policymakers.”