Basel III: not all good news, but Danes saved

Covered bonds are now eligible for new regulatory liquidity buffers, albeit subject to 15% haircuts and other restrictions, under an agreement reached by the oversight body of the Basel Committee on Banking Supervision on Monday. And Denmark’s adjustable rate mortgage market has won a stay of execution as a result of the committee delaying implementation of the Net Stable Funding Ratio until 2018, and its willingness to change its position on matched funding of liabilities of less than one year. Read EuroWeek to find out how supply of, and demand for, covered bonds could be affected.