Moody’s Says Issuers of Covered Bonds Can Structure Deals to Minimize Rating Linkage
October 10, 2008
Although the two covered bond programs launched in the U.S. had identical structures and there is no federal law on covered bonds, potential sponsors have considerable flexibility to put together transactions tailored for their needs, suggests Moody’s Investors Service. Ratings on all covered bonds are, to some extent, linked to the corporate ratings of the sponsor...