Covered Bond Talks Intensify as Bank Liquidity Rules in Play
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European talks on how to treat covered bonds in banks’ liquidity buffers intensified this week as nations with the most at stake fought to ensure Basel III rules don’t hobble their markets.
Denmark, home to the world’s biggest covered-bond market per capita, is moving closer to winning some concessions from the European Union that would help avert a sell-off of the nation’s mortgage-backed securities, Karsten Beltoft, head of the Mortgage Bankers’ Federation in Copenhagen, said yesterday.