ABN Amro has opened up yet another covered bond market with its A25 billion Dutch structured covered bond programme, which kicked off last month with a €2 billion issue.
Although the Dutch arguably issued the world’s first structured covered bonds through the Bouwfonds vehicle, these did not achieve the degree of separation between the issuer rating and the bond rating that has been possible in the UK. “With Bouwfonds, you just took the underlying issue, threw in some collateral, and got a two-notch upgrade,” says Evertjan Manuels, vice-president, group ALM, for ABN Amro.
To improve on this, ABN modified the UK structure.
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