Covered bonds are virtually as liquid as government bonds, according to a “very preliminary” draft ranking released by the European Banking Authority yesterday (Wednesday), which market participants have said puts the asset class in a strong position to be considered as Level 1 assets in Liquidity Coverage Ratios.

The European Covered Bond Council will soon take a final decision on adopting CRD compliance as a criterion for the Covered Bond Label, shortly after the issue proved contentious at a meeting last week.

Nordea has recruited Swedish central banker Mattias Persson as head of group funding to replace Fanny Borgström, the bank announced in mid-July.

Fanny Borgström, senior vice president and head of group funding at Nordea, is leaving the Nordic financial group in August.