Press release

ECBC publishes 2023 Edition of European Covered Bond Fact Book

1 September 2023

The European Covered Bond Council (ECBC) is pleased to announce the publication of the 18th (2023) 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 on the covered bond asset class in terms of market, regulatory and legislative developments and statistical data.

The European Covered Bond Fact Book 2023, featuring the latest statistical data as of end 2022, can be downloaded from the ECBC website here. To complement the Fact Book’s publication, on Thursday, 14 September at 16h35 CEST a roundtable will take place during the Euromoney/ECBC Covered Bond Congress in Munich, Germany where contributors to this year’s edition will highlight some of the main findings and key themes from the 2023 Fact Book. This roundtable will be moderated by Mr Sascha Kullig, Chairman of the ECBC Fact Book Working Group.

Furthermore, as in recent years, the ECBC will host a special virtual publication event on Wednesday, 18 October at 11h00-13h00 (CEST), the purpose of which is to give the chance to all prospective readers to get insights directly from the contributing authors. More details will follow in due course.

The amount of outstanding covered bonds rose by EUR 90 bn to stand at over EUR 3 tn at the end of 2022. This represents the fifth consecutive year of growth and is the first time that the covered bond market has surpassed the EUR 3 tn mark. Moreover, the pace of growth also picked up last year, almost tripling from 1.1% in 2021 to 3.1% in 2022. These figures demonstrate that covered bonds continue to play a key role in European capital markets, contributing to the efficient allocation of capital, while supporting both economic development and the post-pandemic recovery.

The EUR 673 bn of new issuance in 2022 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 their macro-prudential value. 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.

Building upon the solid foundations of the past, the 2023 ECBC Covered Bond Fact Book represents a trusted companion and authoritative guide for Industry leaders, market analysts, investors, and rating agencies, offering in-depth insights, comprehensive data, and a panoramic view of the covered bond market. The publication stands as a testament to ECBC’s unwavering commitment to transparency, transnational collaboration and the promotion of market best practices within the Industry.

Chapter I presents an analysis of eleven key themes of the year, offering an overview of the Industry’s outlook on these, such as green covered bonds, the expanding reach of covered bonds around the globe, the strengthening of SME financing with the European Secured Note (ESN) and a legislative state of play after the last year’s transposition of the Covered Bond Directive in 27 EU countries.

  • Chapter II provides a detailed explanation of covered bond fundamentals, explores regulatory issues, 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.
  • Chapter III presents an overview of the legislation and markets in 44 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 2022.

With regard to the covered bond market statistics for 2022, the ECBC is pleased to confirm that these are now available to download 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 20 years for 36 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 the ECBC Statistics & Data Working Groups, Mr Sascha Kullig and Mr Joost Beaumont, respectively.

Commenting on the publication of the 2023 Edition of the ECBC European Covered Bond Fact Book, EMF-ECBC Secretary General, Luca Bertalot, said:

“Last year’s successful implementation of the Covered Bond Directive represents a landmark achievement, harmonising market practices and enhancing transparency. As 30 countries in the European Economic Area diligently transposed the Directive into their national legislation, the convergence of legal frameworks also strengthened the long-term funding strategic resilience of the Banking and Capital Markets Unions.

In addition to the Covered Bond Directive, discussions surrounding third-country equivalence regimes have gained momentum. Acknowledging the growing global interest in covered bond legal frameworks, the Fact Book extends its reach beyond the borders of the European Union, shedding light on the evolving landscape of covered bonds outside the EU.

The ECBC, as the leading hub for covered bond expertise and insights, remains steadfast in its commitment to transparency, market integrity, and investor protection. We continue to refine and enhance our resources, such as the Covered Bond Label and the Comparative Database, to provide market participants with the necessary tools to navigate regulatory compliance, assess cross-border equivalence, and make informed investment decisions.”