#12 - Covered Bond Research

Despite the current geopolitical environment, covered bond spreads have shown resilience. According to iBoxx covered bond indices, covered bond spreads tightened by 0.4bp vs swap over the past week. Fitch downgraded Belgium to A+ . Following this rating action, Belgi an covered bonds rated AAA by Fitch are expected to be unaffected as covered bond ratings are capped at up to six notches above the applicable sovereign LC IDR. The CEE Covered Bond Market : s ince 2014, the CEE euro benchmark covered bond market has demonstrated significant growth, with the current outstanding volume reaching €15bn. Despite this expansion, it remains a niche segment, accounting c.1.5% of the total euro benchmark covered bond market.