Sustainable Covered Bonds: Assessing The Impact Of COVID-19

S&P held an industry roundtable with portfolio managers, investment strategists, industry representatives and banker concerning developments in sustainable covered bonds and implications of COVID-19 for the product sector. The level of sustainable covered bond issuance is said to be impact by matters concerning mortgage collateral meeting the criteria of issuers’ green or sustainable frameworks, eligibility requirements for covered bond collateral pools and the ability for covered bond issuers to gather an adequate volume of eligible green residential mortgage assets sufficient to issue green covered bonds. The EU Taxonomy on Sustainable Activities is seen as one of the most important regulatory developments impact sustainable covered bond issuance.