{
  "title": "The Use of Mortgage Covered Bonds",
  "publication": "IMF Working Papers, January 1, 2007",
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  "summary": "The rapid mortgage credit growth experienced in recent years in mature and emerging countries has raised some stability concerns. Many European credit institutions in mature markets have reacted by increasing securitization, particularly via mortgage covered bonds.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Authors: Renzo G Avesani, Elina Ribakova\n- Date: January 1, 2007\n- Core observation: Rapid mortgage credit growth in mature and emerging countries has raised stability concerns.\n- Primary focus: Examination of the two largest \"jumbo\" covered bond markets, Germany and Spain.\n- Principal argument: Movements in covered bond prices can be used to analyze the credit developments of the underlying issuer and the quality of its mortgage portfolio.\n- Additional inference: Mortgage covered bonds could be of interest to other mature and emerging markets facing similar risks related to mortgage credit."
    },
    {
      "heading": "Findings and Analysis",
      "content": "- Market dynamics:\n  - Many European credit institutions in mature markets have reacted to rapid mortgage credit growth by increasing securitization, particularly via mortgage covered bonds.\n- Issuer perspective:\n  - Covered bonds have become an attractive funding source and a tool for asset–liability management.\n- Investor perspective:\n  - Covered bonds enjoy a favorable risk-return profile and a very liquid market.\n- Analytical use:\n  - Movements in covered bond prices can serve as indicators of:\n    - Credit developments of the underlying issuer.\n    - Quality of the issuer's mortgage portfolio.\n- Geographic focus:\n  - Detailed examination of Germany and Spain as the two largest \"jumbo\" covered bond markets.\n- Suggested applicability:\n  - Mortgage covered bonds may be relevant for other mature and emerging markets with similar mortgage-credit risks."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- For issuers:\n  - Consider mortgage covered bonds as a funding and asset–liability management tool where appropriate.\n- For supervisors and policymakers:\n  - Monitor covered bond price movements as market-based indicators of issuer creditworthiness and mortgage-portfolio quality.\n- For emerging markets:\n  - Assess the potential role of mortgage covered bonds in addressing elevated mortgage-credit growth and associated stability concerns.\n\n---\n\n Content in this bundle\n\n- wp0720\n  - wp0720 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0720 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-use-of-mortgage-covered-bonds-20172"
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    "Authors: Renzo G Avesani, Elina Ribakova",
    "Published: January 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451865844.001",
    "Authors: Renzo G Avesani, Elina Ribakova",
    "Date: January 1, 2007",
    "Core observation: Rapid mortgage credit growth in mature and emerging countries has raised stability concerns.",
    "Primary focus: Examination of the two largest \"jumbo\" covered bond markets, Germany and Spain.",
    "Principal argument: Movements in covered bond prices can be used to analyze the credit developments of the underlying issuer and the quality of its mortgage portfolio.",
    "Additional inference: Mortgage covered bonds could be of interest to other mature and emerging markets facing similar risks related to mortgage credit.",
    "Market dynamics:",
    "Issuer perspective:",
    "Investor perspective:",
    "Analytical use:",
    "Geographic focus:",
    "Suggested applicability:",
    "For issuers:",
    "For supervisors and policymakers:",
    "For emerging markets:",
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