European and US advantages targeted from NZ covered bond legislation
- Friday, 08 June 2012
Issuers and intermediaries believe the introduction of legislation to support New Zealand's covered bond regime will help the country's banks develop their offshore investor base – both for foreign currency securities and, potentially, for NZD-denominated paper. While emphasising that New Zealand banks have not struggled to issue covered bonds under the existing, regulated system, market participants say a legal setup could add price tension.