20.12.2012 17:05:00
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Moody's: Canada's Covered Bond Guidelines Include Investor Friendly Provisions, But Will Make New Programs Riskier
New York, December 20, 2012 -- Despite robust oversight and disclosure requirements, new guidelines from Canada Mortgage and Housing Corporation (CMHC) will result in greater credit risk for new programs because they prohibit the inclusion of insured mortgages and cash as an eligible asset in covered bond programs, according to a report from Moody's Investors Service, "New Guidelines Are Investor-Friendly, but New Programs Will Still Be Riskier than Existing Insured Programs."