Moody's warns on covered bond relevance as market conference breaks record

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By Bill Thornhill
09 Sep 2020

Covered bonds risk becoming less relevant in future if central banks continue to eclipse private investors as the banking system’s principal funding source, Moody’s warned. Nonetheless, delegates from a record number of countries registered for Euromoney ECBC Virtual Covered Bond Conference, which began on Wednesday.


Though it is likely that secured issuance will be more restricted due to the abundant provision of cheap central bank liquidity, issuers said there were considerable uncertainties to be faced in 2021, and this could well impinge on deal execution for instruments lower down the capital structure.

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