From Crédit Agricole CIB

A brave new world: Market reacts to final CBPP3 details

Oct 10th, 2014

Having announced the third covered bond purchase programme (CBPP3) at its last press conference, at the beginning of September, the European Central Bank last Thursday (2 October) followed up with the technical details of CBPP3 — which didn’t disappoint our expectations as the eligibility criteria are very wide.

US finalises LCR rules, another EC leak

Sep 19th, 2014

The completion of the Liquidity Coverage Ratio (LCR) rules among various countries is proceeding, with the US releasing its final policy. On the euro front, another document was leaked, with most parameters remaining the same.

Groundhog Day

Sep 12th, 2014

The ECB buys covered bonds — again. It’s like changing your password on your computer. You leave the letters identical and increase the number at the end by one to keep it simple — in this case, to 3.

Will higher risk-weight floors hit covered bond issuance?

Jul 10th, 2014

Regulators in several countries have embarked upon attempts to calm down mortgage and housing markets. Besides limiting maximum LTVs, Sweden and Norway have been increasing risk-weight floors for mortgage assets in recent months.

EBA hearing: Will reports to EC, ESRB lead to changes?

Jun 19th, 2014

On Tuesday of last week (10 June) the European Banking Authority (EBA) held a public hearing on covered bonds where it presented plans for risk weight recommendations to the European Commission as well as covered bond best practice recommendations to the European Systemic Risk Board (ESRB) in front of roughly 50 participants from around Europe.

TLTROs and ABS purchase programme: Any ECB impact on covered bonds?

Jun 12th, 2014

Crédit Agricole covered bond analysts weigh the covered bond implications of extraordinary measures announced by the European Central Bank for covered bonds. The market will remain a seller’s market, but the impact on issuance volumes will not be as dramatic as some might expect, they say.

Covered bonds and the LCR: Level 1B, lower minimum rating on the cards

May 16th, 2014

The delegated Act on the LCR, or rather a DG Market Staff Paper on the matter was leaked this week. It is important to stress that this is not yet the final version.

Large exposure limits and covered bonds Will full exemption be a thing of the past?

Apr 24th, 2014

To limit the risk of a bank default leading to major problems at other institutions, regulators limit the overall money that a bank can lend to another institution. Regulators look at the overall existing exposure, including, for example, bond investments or direct lending.

Is there a larger role for FRN covered bonds?

Apr 10th, 2014

Following the first issuance of a euro covered bond to incorporate fixed and floating rate tranches by UniCredit in January Crédit Agricole CIB analysts explore investor opinions of floating rate notes.

Norwegian covered bond ratings withstand S&P stress tests

Mar 27th, 2014

The impact of the Norwegian housing market on covered bonds has been an ongoing topic for quite some time now. After strong growth of over 300% in the last 20 years, we’ve started to see the beginning of a correction in Norwegian house prices more recently.