Australian Securitisation Forum | ASF Course Overviews

Professional Development Courses - ASF Covered Bonds Workshop

It is expected that covered bonds issuance in Australia will give ADIs access to cheaper, more stable and longer duration funding in the wholesale capital markets.

It was therefore welcomed news when the Australian Government announced plans in December 2010 to permit ADIs to issue covered bonds – by way of an amendment to the Banking Act 1959 – as part of a broader package of measures designed to increase competition and resilience within the banking sector. October 2011 witnessed the passing of the legislative amendment in Parliament and also Royal Assent. Making permanent the Financial Claims Scheme in September 2011 also paved the way for this new form of funding to be introduced without even theoretically threatening depositors in the event of ADI insolvency.

Patient market participants – and their advisers and other service providers – will be eager to take advantage of this critical funding tool, not least due to volatile senior unsecured funding markets and expensive deposit funding.

Content

The ASF Covered Bonds workshop is designed to provide an end-to-end analysis of the whole covered bond value chain. It will provide you with an overview of the structure and workings of the covered bonds market, including any that have been issued.

The workshop will explain how covered bonds are likely to be structured; how they compare to the RMBS market and unsecured bank debt; and, in particular, what unique implications arise for the Australian market given the new legal framework. It will also look at some of the issues that impact issuers, investors, rating agencies and trustees.

It will also provide an overview of international covered bonds market dynamics and assess its influence on behaviour in the Australian market.

Workshop Objectives

Participating in the ASF Covered Bonds workshop will equip participants to:

differentiate between covered bonds and other funding instruments, such as securitisation, and assess their balance sheet impacts
discuss the current regulatory and legislative regime for covered bonds
describe the methodologies applied by the rating agencies to covered bonds
discuss the proposed structure for the issuance of covered bonds in Australia
discuss the benefits and disadvantages of covered bonds for issuers and borrowers
explain the role and function of a trustee in a covered bond transaction

Who should attend

The ASF Covered Bonds workshop will be of value and benefit to originators, investors and those potentially participating in the secondary market.

The workshop is intended to be detailed – and as such is targeted at an intermediate audience wishing to understand how this product works from a number of perspectives. Prior knowledge of balance sheet funding and securitisation concepts is assumed.

It is suitable for those working in credit sales, credit trading, credit risk management, portfolio construction and management, legal, accounting, tax and other support areas within institutions. Those managing regulatory risk will also benefit.

Registration