Luminor, Bawag and Caixabank covered bond pools set for change

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By Bill Thornhill
22 Sep 2020

Luminor’s Estonian cover pool will have Latvian mortgages, Bawag’s Austrian cover pool will include Dutch mortgages. And once merger plans are fully completed, Caixabank’s cover pool will include those from Bankia, making it Spain's biggest, with a share of almost a third of the Spanish covered bond market.

Two weeks ago Luminor added €800m of Latvian mortgages to its cover pool, taking the total size to €1.5bn and up from the €700m of purely Estonian mortgages. 

As a result, overcollateralisation (OC) has risen from 42% to over 300%, which compares to 10% needed for the bonds to ...

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