PIE Events
- German Property Breakfast
14 February 2012
Stockholm
- Distressed Property Breakfast
22 February 2012
London
- Central and Eastern Europe Real Estate Conference
03-04 May 2012
Vienna, Austria
ECB's e60bn covered bond plan boosts issuance; need to diversify funding
The European Central Bank's announced program to buy up to e60bn in Pfandbrief covered bonds already boosted new issuance to above e20bn during May, 50% more than in the first four 2009 months, and made new funding via these instruments economical for almost all euro area banks, says Mauricio Noé, Managing Director, Royal Bank of Scotland. Noé said the precipitous drop-off in liquidity as the economic crisis struck concerned the ECB. Banks' ability to issue covered bonds was deemed essential to wean them off government guaranteed product and extend the funding duration.