Bail-out has mixed signals for Cédulas
Friday, July 13, 2012
The proposed bail-out of Spanish banks should be good for Cédulas holders, as the draft memo between the EU and Spain specifies the loss absorbing buffer of a bank’s liability structure. However, the impaired assets that are set to be segregated are likely to shrink Cédulas overcollateralisation (OC) and exacerbate a trend that has accelerated recently due to the surge in retained issuance.
The rest of this article is available only to subscribers and trialists. Already a subscriber? Login here
- News and expert comment
- Reviews on new covered bond issues
- Secondary market, regulatory and structuring developments
- Market Wrap
- Comprehensive covered bond database