Bonds
Westpac NZ issues €200 mln, 17-year covered bond to European pension fund as part of NZ$1.5bln offshore funding round
22nd Feb 16, 1:40pm
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2 Comments
another bundle of prime NZ residential mortgages that will not be available to NZ depositors of Westpac should OBR be invoked. It would be interesting to see the RBNZ analysis of what will be left for NZ depositors since every issue of covered bonds reduces the amount ultimately available to cover NZ deposits - pre-insuring a larger haircut to individual depositors.
But the European Pension fund(s) involved are immune from OBR and will not have any risk, since the covered bonds pool is constantly monitored to remove any non-performing residential mortgages.
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