WHEN IS A covered bond not a covered bond? When it's a structured covered bond? When it's a structurally enhanced covered bond? When it's issued by an opportunistic borrower and bought by an opportunistic investor? When it trades tighter than a government bond?
Covered bonds, it seems, are going through an identity crisis. So are some bankers. In September, Bank of Ireland raised e2 billion through the first mortgage-backed deal under Ireland's asset covered securities (ACS) legislation. A 10-strong management team roadshowed the deal around the world. "What Bank of Ireland achieved this year is as outstanding as what we did last year," says Wally Höfer-Neder, formerly global head of capital markets at Depfa Bank Plc. She will shortly be taking up the same role at Depfa's Deutsche Pfandbriefe Bank.
"When I listened to their presentation, I felt more Irish than German." Depfa had, of course, pioneered the use of...
