29 April 2020
Brussels, 29 April 2020 – For immediate release
This unique overview of global covered bond markets focuses first of all on the current state of play and the outlook for covered bond markets outside of the EEA, with the spotlight on Canada, Brazil, Australia and New Zealand, and Singapore and Turkey. This comprehensive round-up is completed by some updates from the African continent, particularly from Morocco and South Africa.
In light of the recently adopted Covered Bond Legislative Package, the overview also considers the regulatory treatment of covered bonds at a global level and the extent to which there is alignment with the EU standards. This section concludes that the European Covered Bond Directive and the amendment of Article 129 CRR can be considered a good starting point for fundamental principles of covered bonds at a global level, covering dual recourse, bankruptcy remoteness, asset segregation, asset eligibility criteria (incl. LTV), minimum coverage requirements and special supervision (incl. asset monitor).
Established in 2015, the Global Issues Working Group considers covered bond issues from the global perspective to create synergies between traditional, new and emerging covered bond markets. This joining of forces aims to secure the development of a more level-playing field for all at a global level, helping to enhance transparency and convergence, and ensure a proper global recognition of the macro prudential value of the covered bond asset class.
We would like to thank all of the members of the Global Issues Working Group for their contributions and support.
Commenting on today’s publication, Luca Bertalot, EMF-ECBC Secretary General said:
“On what should, under different circumstances, have been the day of the ECBC Spring Plenary in Athens and the opportunity to bring together our global covered bond community, we are nevertheless delighted to mark the day with the publication of this very comprehensive overview of covered bonds from the four corners of the world. At the ECBC, we have always placed great value on the importance of cooperation, both within Europe and beyond, and the current COVID-19 crisis, which has left no global jurisdiction untouched, reinforces the importance of moving forward together!”
More information about the ECBC studies can be found here.