Italian banks are looking at ways of structuring a covered bond without a change in the regulatory framework. Banks, including Monte Paschi Dei Siena, are studying ways of issuing covered bonds in the absence of a specific law because the cost-savings versus residential mortgage-backed securitizations is so significant, explained Anna di Paolo, head of structuring at MPS Finance, Monte Paschi Dei Siena's investment banking unit.
Tim Skeet, head of the European bank coverage group at ABN AMRO in London, said, "One way or another, Italian banks will access the market, because it is liquid, deep and cost-efficient," he adds.
