The world’s biggest investors are warning that a plan to introduce new collateral into the $3.5 trillion covered bond market risks undermining the safety of securities pioneered in 18th-century Prussia.
BlackRock Inc. said using loans to small- and medium-sized companies, or SMEs, to back the securities rather than safer real estate or public-sector debt may devalue the asset class.
BlackRock sounds alarm on covered bond collateral
Most Popular Articles
Latest Articles
Ginnie Mae denies majority of complaint in Texas Capital Bank lawsuit
Ginnie Mae admits only to core facts of the case, denying all allegations, “inferences, arguments, and legal conclusions” in the complaint.