Covered bonds, regarded as among the more resilient parts of the structured credit market, have been thrown into the spotlight after S&P threatened to downgrade the vast majority of the covered bond programmes it rates in Europe, US and Canada. The move affected €1,460bn ($2,154bn) of debt linked to 98 (mainly European) programmes, and follows S&P’s decision in February to revise its methodology. The move shocked some in the market, who felt it did not reflect the fundamentals of the asset class, parts of which now risk losing their triple-A ratings.

This entry was posted by Gwen Robinson on Friday, December 18th, 2009 at 5:07 and is featured in The 6am Cut London (18 Dec 2009) . Tagged with covered bonds, s&p. Edit this entry.