UK Covered Bond Forum 23 rd June 2011 Agenda Opening remarks from - - PowerPoint PPT Presentation

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UK Covered Bond Forum 23 rd June 2011 Agenda Opening remarks from - - PowerPoint PPT Presentation

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UK Covered Bond Forum 23 rd June 2011 Agenda Opening remarks from Chair A. Simons, FSA Developments in the UK Market S. Penketh, Barclays Consultation on the Regulated Covered Bond Framework D. Caldwell, HMT Transparency Standards for

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UK Covered Bond Forum

23rd June 2011

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Agenda

Opening remarks from Chair

  • A. Simons, FSA

Developments in the UK Market

  • S. Penketh, Barclays

Consultation on the Regulated Covered Bond Framework

  • D. Caldwell, HMT

Transparency Standards for Regulated Covered Bonds

  • L. Joseph, FSA

Use of Ratings for Regulated Covered Bonds

  • J. Wu, FSA

AOB

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SLIDE 3

Barclays Treasury - Strictly Confidential

Covered Bond Forum

23 June 2011

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UK Covered Bond Market in 2011 - primary market supply

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UK Covered Bond Take-up by Domicile

Benchmark UK covered bonds, 2010 (YTD)

UK Covered Bond Take-up by Investor Type

Benchmark UK covered bonds, 2010 (YTD)

UK Covered Bond versus Government Bonds Spread Supply of UK Covered Bond (issued in €,£,$)

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UK Covered Bond Market in 2011 - secondary market performance and

challenges

UK 5yr € Covered Bond Performance iBoxx Covered Bond Indices: UK versus Others

100 200 300 400 500 600 700 Mar- 09 J un- 09 Sep- 09 Dec- 09 Mar- 10 J un- 10 Sep- 10 Dec- 10 Mar- 11 J un- 11 Z-Spread France G ermany Ireland Netherlands Portugal Scandi Spain UK

UK GBP Covered Bond Performance

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80 90 100 110 120 130 140 150 160 170 180 Mar-11 Apr-11 May-11 Jun-11 Z-Spread YBS 4.750% Apr 18 COVBS 4.625% Apr 18 LEED 4.250% Dec 18 NWIDE 5.625% Jan 26 ABBEY 5.750% Mar 26 20 40 60 80 100 120 140 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Z-Spread BACR 3.125% Jan 15 LLOYDS 3.375% Mar 15 ABBEY 3.375% Jun 15 RBS 3.000% Sep 15 YBS 3.250% Sep 15

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Covered bond review – key regulatory proposals

Transparency

  • Consistent investor reporting,

including loan-level data

  • Segregating covered bond

programmes by asset type

  • Excluding securitisations as eligible

assets Consistency

  • Asset pool monitor
  • Fixed minimum level of
  • vercollateralisation
  • Updated regulatory reporting

June 2011

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Transparency

  • Setting high standards
  • Implementation
  • UK Authorities’ response to other

initiatives

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Agenda

Opening remarks from Chair

  • A. Simons, FSA

Developments in the UK Market

  • S. Penketh, Barclays

Consultation on the Regulated Covered Bond Framework

  • D. Caldwell, HMT

Transparency Standards for Regulated Covered Bonds

  • L. Joseph, FSA

Use of Ratings for Regulated Covered Bonds

  • J. Wu, FSA

AOB

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FSA Regulated Covered Bond Team

Anna Simons, Manager Anna.Simons@fsa.gov.uk 02070667356 Stephanie Tetu Stephanie.Tetu@fsa.gov.uk 02070662240 John Wu John.Wu@fsa.gov.uk 02070668720 Lara Joseph Lara.Joseph@fsa.gov.uk 02070669270