The determinants of covered bonds funding strategies

• The paper analyses funding strategies of Swedish banks with focus on covered bonds. Based on reposts of assets, which are pledged as a collateral to specified covered bonds issues, and disclosed characteristics of the covered pool, we examine cross effect of the covered bonds funding usage on the structural subordination of junior debt-holders and its effect on the cost of bank funding. Specifically, two funding strategies are considered: first, the usage of SPV (special purpose vehicle) for covered bonds and, second, the direct issuance by mortgage originator. The study provides evidence of the relationship between asset encumbrance levels and the covered bonds usage.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

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