BBVA creates breathing space with €2bn repayment

BBVA has brought forward the repayment of a retained €2bn Cédulas Hipotecarias to next week. It will give BBVA’s covered bond programme some breathing space after its eligible overcollateralisation reached the 125% limit by the end of the third quarter. The freed up collateral will also allow it to adjust its use of cover pool assets while it indexes its house price valuations.