https://news.coveredbondreport.com/2012/12/crd-iv-covered-bond-transparency-mbs-elements-%e2%80%98provisionally-agreed%e2%80%99/ News, analysis, data Tue, 21 Jul 2015 13:50:27 +0000 hourly 1 http://wordpress.org/?v=3.0.1 https://news.coveredbondreport.com/2012/12/crd-iv-covered-bond-transparency-mbs-elements-%e2%80%98provisionally-agreed%e2%80%99/#comment-58 Eusebio Garre Sat, 08 Dec 2012 23:22:17 +0000 https://news.coveredbondreport.com/?p=11644#comment-58 It's not a question of best practice or not: RMBS and Covered Bonds are definitely different products, but the similarities are obvious: both transfer (albeit to different extent) the risk of a mortgage portfolio to investors. Therefore there should be similar requirements for both products. The loan-by-loan-requirement sounds onerous, but covered bond issuers are already delivering loan-by-loan data to the rating agencies on a regular basis, so why not to investors as well? Most investors will prefer to work with stratification tables and only drill down on the large data files when they get really worried about the issuer or changes in the portfolio. It’s not a question of best practice or not: RMBS and Covered Bonds are definitely different products, but the similarities are obvious: both transfer (albeit to different extent) the risk of a mortgage portfolio to investors. Therefore there should be similar requirements for both products. The loan-by-loan-requirement sounds onerous, but covered bond issuers are already delivering loan-by-loan data to the rating agencies on a regular basis, so why not to investors as well? Most investors will prefer to work with stratification tables and only drill down on the large data files when they get really worried about the issuer or changes in the portfolio.

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