Harmonised European covered bonds in sight, but differences likely to remain


Covered bonds are an integral source of funding for European issuers. Data from the European Covered Bond Council (ECBC) fact book 2021 suggests the outstanding volume of covered bonds stood at EUR2.9tn at end-2020.

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Harmonised European covered bonds in sight, but differences likely remain
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Harmonised European covered bonds in sight, but differences likely remain

The covered bonds market is a multi-trillion-euro market, but it is fragmented and concentrated. Each member state has different legislations governing covered bonds, varying in terms of eligibility of cover assets, disclosures, and supervision.