Changes to Turkey’s covered bond legislation are supportive of the credit ratings on these instruments, according to Moody’s Investors Service.

Last week, the Turkish Capital Market Board released a definitive communiqué that unifies and improves two existing pieces of legislation governing mortgages and other assets backing covered bonds. The legislation will enable issuers to better match cover pool assets with covered bond liabilities, reduce market risk and mitigate operational risks in case of issuer insolvency, according to Moody’s.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.