ICMA publish cover pool report
21 August 2014 London
Image: Shutterstock
A report from the International Capital Market Association (ICMA) reviews the progress in attempts to improve and standardise disclosure of the cover pool data for the asset class in certain national markets across Europe and makes recommendations on future measures.
Commissioned by the ICMA’s Covered Bond Investor Council (CBIC), covered bonds are an important component in the funding of financial institutions.
Backed by a collection of investments, the cover pools, which usually consist of mortgages or public-sector loans, are faced with an expanding number of issues in different jurisdictions.
Investors need updated, comprehensive and readily comparable information in order to make informed investment decisions, including consistent data on the composition and quality of the cover pool.
Earlier reports by the CBIC defined a standard disclosure template, but the new report shows progress has been slow.
The report compares a sample of national templates, created in 2012, against the CBIC standard and concluded that there is still a clear need for data that is accessible, comparable and goes beyond the requirements of the European Covered Bond Council.
Andreas Denger, acting chair of CBIC, said: “The CBIC has always seen transparency to be key to the success of the covered bond market.”
“Therefore the CBIC template has pushed higher the level of transparency. For the analysed countries, [the] report contributes to identify the gaps left and investors needs in general. The CBIC will certainly take the recommendations forward.”
Commissioned by the ICMA’s Covered Bond Investor Council (CBIC), covered bonds are an important component in the funding of financial institutions.
Backed by a collection of investments, the cover pools, which usually consist of mortgages or public-sector loans, are faced with an expanding number of issues in different jurisdictions.
Investors need updated, comprehensive and readily comparable information in order to make informed investment decisions, including consistent data on the composition and quality of the cover pool.
Earlier reports by the CBIC defined a standard disclosure template, but the new report shows progress has been slow.
The report compares a sample of national templates, created in 2012, against the CBIC standard and concluded that there is still a clear need for data that is accessible, comparable and goes beyond the requirements of the European Covered Bond Council.
Andreas Denger, acting chair of CBIC, said: “The CBIC has always seen transparency to be key to the success of the covered bond market.”
“Therefore the CBIC template has pushed higher the level of transparency. For the analysed countries, [the] report contributes to identify the gaps left and investors needs in general. The CBIC will certainly take the recommendations forward.”
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