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

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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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