Bank of New Zealand hails Reserve Bank’s covered bond repo eligibility rules
Market participants have welcomed the release by the Reserve Bank of New Zealand of rules for the repo eligibility of covered bonds in the domestic New Zealand market, saying that they buttress the regulatory standing of the instrument in New Zealand.
The Reserve Bank of New Zealand announced the rules on July 28. They include references to minimum rating standards, parameters for collateral, asset segregation, monitoring, pricing and clearing.
Bank of New Zealand launched the first and as yet only covered bond from the country, a NZ$425m ($235m) domestic issue
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