The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Ireland: a high-quality covered bond package



The Irish covered bond, endlessly promised and hyped for the past couple of years, is set to emerge in the new year. Some features that were unique attractions when the legal framework was first proposed in early 2000 have been nullified by other markets' progress in the meantime - the amended German mortgage banking act, for example, allows the inclusion of assets from a wider range of countries in Pfandbrief covered pools.

Of all the new covered bond laws under preparation - others include Finland and Italy - this is the one likeliest to produce issuance within the next few months.

Fewer issuers will be there at the start than had once been expected. Rheinhyp had planned to drive the market but will now take a less active role since its incorporation in the new Eurohypo. But the Irish asset covered security (ACS), as it has been named, is still expected to develop well. Its rules for investor protection are the most stringent yet seen, with tight supervision, strict controls on assets eligible for cover pools and no possibility of risk from duration mismatching.

DePfa remains committed
DePfa's Wally Hoefer-Neder says her bank, which was closely involved with the design of the new law, remains committed to the market and will probably issue there early next year.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree