S&P: Global Covered Bond Insights, Characteristics And Rating Summary Q2 2018

14 June 2018

On the 13 June, S&P Global Ratings  published two publications:

  • a commentary, called Global Covered Bond Insights Q2 2018, providing an overview on recent developments in the covered bond market and rating trends, and
  • a report, called Global Covered Bond Characteristics And Rating Summary Q2 2018, presenting the main characteristics of the covered bond programs they rate.

Previously, these two reports were combined in one publication.

Key takeaways:

  •  S&P covered bond ratings have remained stable so far in 2018 on the back of supportive macroeconomic conditions.
  • Favourable credit conditions and a stable outlook on most issuers and sovereigns should support covered bond ratings stability throughout the second half of 2018.
  • After a strong start of the year, covered bond issuance may slow down due to tapering of ECB purchases and political uncertainty (especially if the recent political turbulence in Spain and Italy and associated market volatility persist.)
  • The European Commission’s proposed legislative framework, along with new legislation in jurisdictions outside Europe, should encourage the development of new covered bond markets.


To read the full article “Global Covered Bond Insights Q2 2018” click here

To read the full article ” Global Covered Bond Characteristics And Rating Summary Q2 2018” click here