Spanish issuers deleverage, expect confidence to return

An official at a Spanish national champion tells The Cover how he expects to fulfil next year’s funding requirement and how his plan compares with this year’s funding. He thinks covered bonds will remain in the liquidity coverage ratio and believes they may even be lifted to level one. Though the RMBS market has not made a comeback, he thinks that it might. Given the more stable secondary performance versus covered bonds, there is a case for it being included in the LCR which could help the market return.