Covered bond bail-in exemption put to the test

The Austrian Financial Markets Authority (FMA) said on Sunday that it will proceed with a resolution of Heta Asset Resolution AG (HAR), the state-owned wind down company responsible for disposing of the non-performing assets of Hypo Alpe Adria (HAA). The process is expected to provide the first practical test of the covered bond market’s exemption from bail in said analysts at Deutsche Bank.