The Euromoney/ECBC Asian Covered Bond Forum


Ad Visser
Head of Financial Markets and Collateral Section, Market Operations Analysis Division, European Central Bank

The Euromoney/ECBC Asian Covered Bond Forum will be returning to Singapore for the 4th time on Tuesday 7 March 2017. The Singaporean issuers have shown the strong appetite that exists for Asian covered bonds amongst the traditional European investors in the product. Their inclusion in the ECBC’s covered bond label is an indication of the level of acceptance that they have achieved. At the same time Korean covered bond issuers have adopted a different model but have been equally successful targeting their more traditional US dollar investors.

Meanwhile, in Europe this is a period of rapid change for covered bonds. The European Central Bank’s support for the asset class has seen ever tightening spreads and bond shortages, much of the market now trades at negative yield with significant repercussions for all market participants. The European Commission continues to contemplate the pros and cons of a Covered Bond Directive.

At this conference we will gather Asian and European experts - issuers, investors and regulators – to discuss the key implications of these developments, including:

• How will Singapore transition from successful debutant to mature covered bond market? Other jurisdictions to have embraced the product in the past have at this stage started to see the development of local investor base, the introduction of prudential regulation for the buy side and a national debate on the optimal level of covered bond funding for financial stability purposes.

• Where Singapore and Korea have laid down a path, which other countries will follow? Which regulatory and structural models will the new countries adopt? And how will these models be adapted to reflect those countries different credit profiles, funding needs and underlying mortgage markets? 
• Will the Basle committee recognise covered bonds? If so, how will they define the product? what are the implications for Asian investors? And for the regulatory treatment of Asian covered bonds by European investors?

• What are the implications of the latest developments in Europe, in particular the ECB’s buying programme distorting relative value, the possible future covered bonds directive and the latest credit updates?

We look forward to discussing these and other topics with you.

You can still view the agenda and more information from the 2016 Asian Covered Bond Conference.

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