The recent tightening of European legislation for covered bonds has led to the emergence of a set of ‘best practices’ and is making legal frameworks for covered bonds more comparable across Europe, said Moody’s Investors Service in an updated Rating Methodology report on European covered bonds (ECBs). However, despite the increasingly similar ECB frameworks, Moody’s states that their relative strengths and weaknesses warrant adopting different rating notching practices across countries and justify rating covered bonds between one and four notches above the senior unsecured debt rating of a given issuer. Moody’s rating approach for ECBs emphasises the strengths of these secured debt instruments relative to the senior unsecured debt obligations of a given issuer. ‘In particular, covered bonds exhibit a lower severity of loss than the unsecured obligations of a given issuer, and specific bondholder protections in case of issuer insolvency may also further reduce covered bonds’ probability of default,’ said Alexandra Sleator, SVP/Co-ordinator for European Covered Bond Ratings.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more