Covered Bonds

European Central Bank governing council member Ewald Nowotny has played down the prospect of the ECB’s Eu60bn covered bond programme being in any way renewed when it ends in June 2010. Meanwhile, the total bought so far under the programme has risen by Eu167m.

THE POLL IS NOW CLOSED. The Cover’s poll to find out which covered bond should be declared deal of the decade is now open, following the selection of a final shortlist of eight issues.

Witnesses at the House Financial Services Committee hearing on covered bonds today (Tuesday) are set to support moves to introduce covered bond legislation in the US, but there does not appear to be a consensus as to how broad the range of assets eligible as collateral should be.

The European Central Bank reported its 10th consecutive below average increase in covered bond purchases this (Tuesday) morning. Meanwhile, The Cover has made some adjustments to its reporting of the ECB’s reporting to reflect seasonal influences.

Total settled purchases under the European Central Bank’s purchase programme rose by Eu81m to reach Eu26.654bn this (Monday) morning, the beginning of the 23rd full week of reporting under the scheme.

Fitch has affirmed ING Bank’s mortgage-backed covered bonds at AAA after the issuer amended its programme to provide for a “supplemental liquidity reserve amount”.

Mitigating actions taken or to be taken by Ireland’s covered bond issuers mean that downgrades of the institutions’ short term issuer default ratings by Fitch last week have no impact on their covered bond ratings, the agency said on Friday.

Moody’s has endorsed legislation proposed by Congressman Scott Garrett a day before the House Financial Services Committee will hold a hearing on the prospects for covered bonds in the US.

Fifty-four multi-cédulas are under analysis by Fitch after the rating agency on Friday announced new rating criteria for the asset class to harmonise them with RMBS and SME CDOs and taking into account Spain’s updated covered bond framework.

Asset covered securities and UK covered bonds issued by members of the Anglo Irish Bank group could be cut to below Aaa, said Moody’s yesterday (Thursday), after placing on review for possible downgrade Anglo Irish Bank Corporation Limited’s issuer rating earlier this week.

Ahead of Tuesday’s House Financial Services Committee hearing, Congressman Scott Garrett spoke exclusively to The Cover’s Neil Day yesterday (Thursday) about his push for the development of a US covered bond market and the chances of legislation being passed. Read the full interview here.

A Eu206m increase in settled covered bond purchases reported by the European Central Bank this (Friday) morning was almost as much as the aggregate of the previous four days, but the week’s total is still the lowest since the purchase programme began.