Coventry takes Godiva to covered bonds

Houses
By Bill Thornhill
21 Oct 2020

Coventry Building Society (CBS) has set up a second covered bond programme that is secured exclusively on the mortgages originated under its buy-to-let Godiva platform, which had previously been funded through its Mercia RMBS programme. Although the covered bonds require more collateral to reach the same rating, they offer greater funding flexibility as they can be pledged for repo and are eligible for the liquidity coverage ratio.

Fitch has assigned an AAA rating to CBS’s new buy-to-let covered bond programme secured on mortgages originated under its Godiva Mortgages Limited subsidiary. The programme sits alongside its existing covered bond programme, which is secured on owner-occupied mortgages and has £5.2bn bonds outstanding.

According to sources ...

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