Advisory committee backs Dutch Mortgage Bonds, Fitch not convinced

A Dutch Mortgage Institute (NHI) that will issue a new type of government-guaranteed bond moved a step closer to fruition this week, after a high-level committee advising the Dutch government endorsed it as a way of reducing costs for mortgage borrowers. The initiative may lead to lower covered bond supply but the net impact will be minimal given very little is currently being issued and given doubts, expressed by Fitch, suggesting the scheme offers little material benefit for banks.