Luxembourg to cook up a moveable feast

Luxembourg’s covered bond framework is expected to be updated to introduce a new asset class of “movable objects” lettres de gage, including ships and aircraft, according to the country’s issuers. Under a parliamentary bill, certain ABS will also become eligible for cover pools, a minimum overcollateralisation level of 102% will be introduced, and the maximum loan-to-value ratio of residential mortgages will be increased from 60% to 80%.