| Autor: |
Sanchez-Guerra Roig, Luis, Cuesta Pastor, Alberto |
| Předmět: |
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| Zdroj: |
Euromoney; Jul2001, Issue 387, Special Section. p4-5, 2p |
| Abstrakt: |
The article focuses on the growth of the cédulas hipotecarias market due to diversification within the European covered bond market and a widening of investor options. Cédulas Hipotecarias are bonds secured by the issuer's entire book of mortgages, except for those serving as collateral for other mortgage securities. The reason for using this instrument is low-cost funding for mortgage portfolios. By law, the maximum amount of the instrument that an institution can issue is restricted to 90% of outstanding eligible mortgage loans. Eligible mortgages are domestic loans guaranteed by a mortgage on residential or commercial real estate that are not serving as collateral for other securities. Additionally, mortgage loans serving as collateral for cédulas hipotecarias must comply with the legal requirements of having a maximum loan-to-value ratio of 80% in the case of residential property and 70% in the case of commercial property, and must be guaranteed by a first-lien mortgage. |
| Databáze: |
Complementary Index |
| Externí odkaz: |
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