Commerz and delle Marche link covered to ABS

The ABS and covered bond worlds have come closer together after Fitch had to explain its rating methodology for Commerzbank's SME structured covered bond programme. The rating agency will apply covered bond criteria to the pioneering programme, even though the bonds will have ABS like features. The news follows an upgrade of Banca delle Marche’s covered bonds after they were cross-fertilised with structured finance technology.