TLTRO III deters covered bond issuance even beyond its three year maturity

By David Freitas
26 Jun 2020

Issuers are struggling to obtain the necessary internal approvals to issue covered bonds, given how expensive the instruments are compared to the European Central Bank's Targeted Longer Term Refinancing Operations (TLTRO III).

The ECB introduced its latest round of the TLTROs in March, offering eligible banks liquidity in the form of three year funding.

The cost of TLTRO III is extremely competitive compared with public markets, including covered bonds. It allows banks to get hold of liquidity at a cost ...

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