- Commerzbank has structured a long-awaited new
covered bond, using SME loans for the first time in
- Under Germany's covered bond legislation, SME
loans are not eligible as collateral to back the
- A special purpose vehicle will guarantee the
bonds issued under the programme;
- Although the programme has been launched, there
is no issue yet.
Fitch's pre-sale report gives a comprehensive insight into
- A number of market participants are considering
setting up their own programmes, with the option of using
different collateral to back the bonds.
Commerzbank's innovative new funding instrument marks the
first time a covered bond-securitisation hybrid has been
structured in the German market. IFLR spoke to the key
firms involved to find out exactly how it was done, and how the
bonds could evolve in the future.
The 5 billion programme from Germany's second biggest bank
uses loans from small and medium-sized...