Kommuninvest ready for covered boom

By Kathleen Gallagher
15 May 2014

Kommuninvest has tightened its medium term note levels after finding increased demand following speculation that covered bonds — which the agency prices relative to — could attain Level 1 status under Basel III’s liquidity coverage ratio put downward pressure on its funding costs. It comes as the issuer also enjoyed a revisit to euros, printing private placements in the currency for the first time since October 2011.

According to an internal document being circulated at the European Commission and published by the Danish Ministry of Economic Affairs and the Interior on May 9, covered bonds will be considered level one assets under the Basel III liquidity coverage ratio (LCR), provided they comply with a number ...

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