Is a commitment to triple-A really worth it?
Bayerische Landesbank’s decision to commit to a specific overcollateralisation for its two covered bond programmes to maintain triple-A ratings has sent a strong signal to investors that it is committed to keeping its quasi-agency status. But, in today’s regulatory environment the top rating is not economically justified, least of all in Germany where technical factors have compressed the credit curve.
Unlock this article.
The content you are trying to view is exclusive to our subscribers.
To unlock this article: