Of Special Interest

8th April 2011

UK consultation on the covered bond market

The Treasury has opened consultation on the UK covered bond market. Interested parties have until July 1st to respond. The Treasury states that Covered bond market is an important source of funding and that it seeking to better align the UK market with that in other countries. There is reference to the discussions held with other European countries.

Perhaps the most significant comment made in the covering document is that ". . the UK believes that in the exercise of any future 'bail-in' powers, secured creditors' rights to collateral should not be over-ridden".

Various papers and the consultation document can be found at: