VDP secures priority claim on UK assets in post-Brexit world

Brexit 230x150 Adobe Stock AS
By Bill Thornhill
17 Feb 2021

The Association of German Pfandbrief Banks has developed a contract to ensure Pfandbrief investors’ priority claims on UK-based cover pool assets after Brexit.

As a result of the UK’s departure from the EU, courts in England and Wales can distribute the assets of a defaulting European Economic Area issuer to general creditors under English insolvency law, putting covered bond investors at risk.

Moody’s suggested issuers would mitigate material risks to ...

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