Best friends forever? Covered bonds react to regulation

March 28, 2011 12:00 am

New regulation is coming thick and fast, with Basel III set to re-order the fabric of the capital markets. Right now, covered bonds are the darlings of the rule-makers, and in the brave new Basel-ed world, could be the bank funding instrument of choice — unless asset encumbrance worries get the better of the authorities. Owen Sanderson looks at the regulatory threats and opportunities.

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