This study examines the current state of the European covered bond markets and the likely costs and benefits of introducing a dedicated EU legal framework for covered bonds comprising the following building blocks: (i) a harmonised definition detailing the standard structural aspects of a...

Covered bonds constitute one of the largest asset classes in Europe and represent an important source of stable, long-term funding for key banking functions such as mortgages and public infrastructure loans. Exceptionally, this asset class has no record of default during its 250 year history in...