The European Covered Bond Council (ECBC) launched its Label Initiative, which will highlights the value and quality of covered bonds for investors.
It is expected to improve access to relevant and transparent information for investors, regulators and other market participants. The long-term objective of the initiative is to promote liquidity and strengthen covered bonds' secondary market activity.
The ECBC is developing the initiative in co-operation with issuers, investors and regulators with the aim of ensuring that the views of all stakeholders are incorporated.
The initiative, explained the ECBC, is based on the Covered Bond Label Convention, which defines core characteristics required for a covered bond program to qualify for the Label. This definition of the required characteristics is complemented by a transparency tool that will be developed at national level.
Implementation for the Label Initiative will be presented at the next ECBC plenary meeting, which is scheduled in London in the spring of 2012.