Covered Bonds

Training

In In House

£ 650 + VAT

Description

  • Type

    Training

  • Location

    In house

  • Duration

    1 Day

  • Start date

    Different dates available

By the end of the course participants will be able to understand: What a Covered bond is. Its pros and cons for investors and issuers. Its regulatory capital treatment for investors and issuers. How much it varies by type and jurisdiction. How Structured Covered bonds are created and how they compare. How issuance has spread internationally. How they performed during the credit crisis. Suitable for: Fund Managers and their Support staff. Operations & Back Office staff. Risk & Compliance managers. Accountants & Lawyers (CPD eligible). IT & System executives involved in Fixed Income applications. Brokers, Bankers and IFAs looking at new investment opportunities. Dealers, Treasury, Control and Valuation staff

Important information

Documents

  • Covered Bonds

Facilities

Location

Start date

In House (London)
See map

Start date

Different dates availableEnrolment now open

Start date

Different dates availableEnrolment now open
Different dates availableEnrolment now open
Different dates availableEnrolment now open

About this course

Basic Fixed Income knowledge and some awareness of the basics of mortgages would be helpful but is not essential.

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Reviews

Subjects

  • Risk
  • Staff
  • Bonds Trading
  • Trading
  • Securities
  • Balance Sheet
  • Credit
  • Quality
  • Public Sector
  • IT risk

Course programme

Course review:

The Covered Bond market is a large and important part of the European bond markets with a loyal and growing investor base. Given recent disruptive events and falling credit quality, the security provided by Covered Bonds is likely to result in much more attention in future. This course explains what a Covered Bond is, looks at its pros and cons for different investor types and for issuers, and focuses on the significant variation between the different issue types, including Structured Covered bonds and the many geographic sectors.

Content

· Background

o The size and development of the market

o An overview of the key features of a typical Covered bond, based on jumbo Pfandbriefe – fixed rate, bullet, on-balance sheet funding, giving a prior claim on a ring-fenced pool of assets with defined minimum credit quality and over-collateralisation levels, enshrined in legislation

o Investor pros and cons: the credit record, Risk Weight, pricing, their place in debt indices

o Issuer pros and cons: funding at a competitive rate, Basel and capital requirements, comparison with securitisation

o Trading & Settlement

· Case study: A recent Pfandbrief issue

· Defining a Covered bond: the UCITS Directive

· Pfandbriefe in more detail:

o Asset types: Public sector loans (Offentliche), Residential and Commercial Mortgages (Hypothekenpfandbriefe), Schiffspfandbrief

o Foreign assets

o Issuers and issuer types

· Asset-Liability Management and hedging

· Managing the issue over its lifecycle

· Rating agency analysis: how the rating agencies approach rating Covered bonds

· Risk weights and the investor base

· Case study: A rating agency pre-sale report of a recent issue

Other major areas:

· Cedulas Hipotecarias, Over-Collateralisation levels and Cedulas Cajas: bonds covered by Cedulas Hipotecarias

· Obligations foncieres: Societes de Credit Foncier (SCFs)

· The geographic spread of Covered bond issuance:

o Structured covered, eg UK - HBOS, subsequent legislation, Holland

o Irish Asset Covered Securities (ASC), Depfa

o Others: Austria, Finland, Sweden, Portugal, Denmark, Italy’s CDP

o Beyond Europe: US - Washington Mutual and Asia - Kookmin

· Case study: Recent Cedulas Hipotecarias and Cedulas Cajas issues

Covered Bonds

£ 650 + VAT