France’s new refinancing market explained

Author: Danielle Myles | Published: 30 Aug 2012

A French deal has revived the use of mortgage bonds and created a new refinancing market, just in time to help tackle Europe’s looming debt maturity wall.

BNP Paribas arranged a €472 million bond offering, directly secured by mortgages, to refinance the Lumière building in Paris.

While obligations foncières – the French equivalent of covered bonds – have historically dominated mortgage...