Norwegian covered bonds exposed to oil price-sensitive markets will be able to withstand the effects of persistent low prices thanks to sufficient levels of surplus OC, according to Moody’s, with the rating agency also noting that the relevant programmes should prove resilient to a consequent weakening of the Norwegian economy.

Lately some investors have become a little concerned about Canadian and Norwegian covered bonds on the back of the major oil price drop of the last few months, write Crédit Agricole CIB covered bond analysts Florian Eichert and Stephan Dorner.