#covered bonds

[reevajobs]

covered bonds:- Covered bonds are fixed-income securities backed by both the issuing institution and a dedicated pool of high-quality assets. Digifinn provides information to help investors evaluate their features and suitability.

[olivereverling]

ECB Sidelines Private Investors

ECB Sidelines Private Investors

In a research piece titled “Covered bonds at a turning point?” published by Scope Ratings the dominate role of the European Central Bank (ECB) for credit rating agencies becomes once more very obvious. “The covered bond market is in upbeat mode. But while issuance has picked up significantly, public supply will remain well below the EUR 100bn mark of previous years”, says the report. The grim…

View On WordPress

[ultimateonlinemortgage]

Danish covered bond and mortgage markets: Negative interest rates | Ultimateonlinemortgage.com What are the implications of negative interest rates for the Danish mortgage and covered bond markets?

[oneminutemoneymagazine]

Obscure Financial Instruments: Covered Bonds

[Apologies that this post was delayed for a few days by a house sale.]  The 10th anniversary of the start of the 2007/08 banking crisis reminds me of the role of financial futures.  Some of them looked amazing, but they had nothing backing them up except sub prime mortgages which the borrowers were unable to repay.

There was another, albeit less disasterous, fiasco in Chancellor Gordon Brown’s last Budget in 2007.  He enthusiastically announced a revolutionary new approach to mortgage lending.  The problem was that borrowers could be caught out by interest rate rises increasing their monthly payments to their bank or building society.  His wish was for new mortgages to be available with rates of interest fixed for a period of 25 years.  Underpinning them would be financial instruments called “covered bonds” which would be explained in full the following year by his successor.  Opposition leader David Cameron should have challenged this, but didn’t.

Then came the banking crisis.  In new Chancellor Alistair Darling’s first Budget in 2008, there was not a mention of covered bonds.  Opposition leader David Cameron should have challenged the omission, but didn’t.

You’ll find definitions of covered bonds on the internet, but all the ones I’ve seen have been woffle.  In August 2007, I wrote on an online forum “There are long term dangers for lenders issuing 25 year fixed rate mortgages.  After 10 years, borrowers can leave without penalty if we have lower interest rates or stay on the same cost if we have higher interest rates - a case of heads I win, tails you lose.  Remember Equitable Life who guaranteed too much and were all but bankrupted by interest rates moving the “wrong “ way.  Regarding covered bonds, what exactly are they?  Just how will they support penalty free 25 year fixed-rate mortgages without danger to the lenders’ solvency, while costing only 0.01%?  It will take a lot more to convince me.”

Sorry it was so cynical, but it was accurate.  Richard Branson famously said “I always make it a rule not to invest in things I don’t understand”.  Had the financial establishment practised this, the crash of 2007/08 would never have happened.

(18/08/2017)

[oneminutemoneymagazine]

The EU Debate: Can Gordon Brown Save the Remain Campaign?

Think back to the 2014 Scottish independence referendum.  The pro-UK side started to get worried about the opinion polls.  Then, as if by magic, former Chancellor and Prime Minister Gordon Brown appeared.  He had a magic goody bag full of presents for the Scots if they stayed in the UK and some say that this swayed the debate.

Gordon Brown remains articulate, but he has no access to a goody bag of EU benefits.  David Cameron has already held lengthy negotiations with the other 27 EU leaders and the EU Commission to see what concessions could be obtained if the UK remained in.  In my view, they came away with very little (more about this in the future), but what they did get was final.

Also I do not feel that Gordon Brown has the credibility he used to have.  As Chancellor, he frequently promised that there would be “no more boom and bust”.  Then we had the biggest bust since the Great Depression in the 1930s.

He is also too easily seduced by bankers and other financial professionals.  For example, in his last Budget Statement in 2007, he told us that his government would introduce mortgages with interest rates fixed for up to 25 years.  They would be backed by new financial instruments called “covered bonds” and his successor (Alistair Darling) would explain all in next year’s Budget.  Then came the financial crash and “covered bonds” (whatever they are) were never heard of again.

Apologies to Gordon Brown’s supporters, but I do not see him as a reliable financial forecaster.  Furthermore, he doesn’t have a magic goody bag this time!

(15/06/2016)

[apacfinancialmarkets-blog-blog]

Singapore one step closer to first covered bond

APAC Financial Markets • Singapore is on course for its first covered bond after the country’s monetary authority published feedback over a consultation paper it sent out in January.... more http://wp.me/p62aKF-9es #CoveredBonds, #FIG, #MAS, #Singapore #Issuance/Pipeline

[apacfinancialmarkets-blog-blog]

BONDS: CIBC to issue five-year covered Kangaroo

APAC Financial Markets • Canadian Imperial Bank of Commerce has mandated HSBC, NAB and UBS as joint bookrunners and CIBC World Markets as joint lead for an offering of benchmark five-year Kangaroo covered bonds.... more http://wp.me/p62aKF-7kc #Bonds, #CIBC, #CIBCWorldMarkets, #CoveredBonds, #HSBC, #Kangaroo, #NAB, #UBS #Bonds, #Issuance/Pipeline

[smartestfinance]

Japanisches Szenario, Covered Bonds und der Hochmut

EZB kauft nun auch Covered Bonds

Die Kreditvergabe in der europäischen Peripherie gestaltet sich seit geraumer Zeit mehr als schwierig. Die EZB hat deshalb, und auch zwecks der Entlastung der Bankbilanzen, Pfandbriefkäufe in einem Gesamtvolumen von etwa 1,7 Mrd. Euro getätigt. Nach dem Vorstoß in den Bereich der privaten Anleihen hat die Europäische Zentralbank nun auch Kreditverbriefungen auf ihrer Einkaufsliste. Draghi ist endgültig bereit eine weitere Aufblähung der Bilanz um eine Billion Euro vorzunehmen. Ob der Markt überhaupt in der Lage ist dieses Volumen zu absorbieren steht gegenwärtig auf einem anderen Blatt. Früher oder später wird sich das End Game um die massiven Staatsverschuldungen in groß angelegten Staatsanleihekäufen niederschlagen.

Für gewöhnlich sollten Staaten in der Lage sein aus ihren Schulden herauszuwachsen. Jedoch hat sich die abzeichnende Konjunkturflaute im gemeinsamen europäischen Währungsraum mittlerweile insbesondere in der langanhaltenden Jugendarbeitslosigkeit niedergeschlagen und zwar in solchen Dimensionen, dass man die Wahrheit nicht mehr verschleiern kann und auch nicht mehr verschleiern darf.

Selbst der EZB-Ratsmitglied Nowotny sprach erst kürzlich in diesem Zusammenhang von einem möglichen "japanischen Szenario" in Europa. Hierbei werden niedrige Inflationsraten von einem geringen Wachstum begleitet. Die unmittelbare Folge ist das Verharren auf niedrigen Produktionsoutputs, was den Arbeitsmarkt auf die Dauer schwächt und zu einem Einstellungsstopp beziehungsweise Entlassungen führt.

Dieser Marktkommentar stellt ein Exzerpt aus dem Smartest Finance Market Snapshot dar. Den kompletten Bericht sowie weitere Publikationen können Sie in unserem Blog sichten. Smartest Finance – Passion and Excellence

Börse | Forex-Kurse