vdp sets a common covered bond standard
Recent amendments to Germany’s Pfandbrief Act have stirred the interest of covered bond market participants. Transparency requirements have been fine-tuned to enable like-for-like comparison between different cover pools. New powers have been granted to the cover pool administrator allowing it to issue Pfandbrief in its own right and access central bank funding in the event of an issuer’s insolvency. Onerous third party liquidity arrangements are avoided, ensuring full and timely payment.
Jens Tolckmitt, chief executive of The Association of German Pfandbrief Banks (Verband deutscher Pfandbriefbanken — vdp) talked to EuroWeek’s Bill Thornhill about the amendments
and how they tie in with the association’s own initiatives.
How have recent changes to the Pfandbrief Act benefited investors?
In the last amendment of the Pfandbrief Act in November 2010 two major changes took effect. One concerns transparency where we worked to improve timeliness of data provision. The second, and more profound change of the law, was with
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