Investors fret over NordLB Lux as wind-down looms

By Bill Thornhill
02 Dec 2020

Investors holding the covered bonds issued by NordLB in Luxembourg said on Wednesday that they were concerned about prospective rating downgrades after the bank said it would be wound down and in the wake of Fitch’s announcement on Tuesday that it had withdrawn its covered bond rating.

Within the context of the NordLB Group's 2024 transformation programme, NordLB's Luxembourg covered bond bank has said it will no longer issue public sector or renewable energy covered bonds. 

Despite a commitment to manage the cover pool and a letter of comfort from the parent bank, a major investor ...

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