The UK has had the fastest growing covered bond market in recent years, with issuers taking the structured route in the absence of any UK covered bond law. And 2007 is expected to be another record year for new issuance.
In spite of the rapid development of the market, though, the UK government is nonetheless moving forward with legislation, mainly driven by a desire to make UK covered bond products compliant with EU Undertakings for Collective Investment in Transferable Securities (UCITS) legislation, which assigns a 10% risk weighting to eligible covered bonds.
