Covered bonds: Call for covered bond calm in face of delay

The UK Treasury has delayed the implementation of the UK’s recognized covered bond law until March 6 from its originally planned date at the beginning of January. Although some have reasoned that this is because of last-minute objections raised by the UK Investment Management Association (IMA) concerning, among other things, insolvency procedures, the actual reason is far more administrative. “Industry worked closely with [the UK Treasury] and the FSA on the development of the proposed covered bonds regime,” says Rob Robinson, covered bond analyst at Merrill Lynch.