UK covered bonds are strong despite payment holiday risks, says Fitch

By David Freitas
14 Jul 2020

Fitch played down fears about the impact of payment holidays on UK covered bond pools this week, arguing that high credit quality would offer a strong line of defence against defaults.

In a report published on Monday, the credit rating agency said that it would expect Covid-impacted loans to remain in UK cover pools so long as borrowers do not default.

There has been a very large take up of payment holidays in the UK, with Fitch estimating that 17% ...

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