Tellimer

Sector Flash - Covered Bonds: Austria’s path to a new covered bond legislative framework

  • After 16 years in which covered bonds in Austria were issued under three different legal frameworks, the long-awaited and updated single framework is close to being introduced.
  • The Austrian Ministry of Finance published a draft of the new covered bond legislation. Following a consultation period and the implementation of potential changes, the new law is scheduled to come into force on 8 July 2021.
  • The key changes concern new LTV limits, the introduction of a liquidity buffer and a soft-bullet structure, OC requirements and the introduction of multiple cover pools.
  • However, several aspects need further clarification in the upcoming weeks, in our view, with regard to both primary and secondary legislation.

Most Viewed See latest
Disclosures

This publication is being distributed by Tellimer solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not con...

Full Tellimer disclaimers