Monthly Archives - February 2017

Security covenant test earns good marks

February's assessment of security cover for REAL Bonds Series 5 & 6 shows that loans represent only 45.2% of the value of the security pool.  Director Alan Bate comments, “The assessment is well below the scheme’s maximum permitted 75% loan-to-value so bondholders currently have much greater security cover.  Put another way, bondholders would still be protected if the existing security assets were to halve in value.”

Bank boost for Bond interest-tracking feature

Today’s news of changes on the Bank of England's Monetary Policy Committee once again puts base rate in the spotlight, writes REAL director Alan Bate. Kristin Forbes, one of the nine rate-setters on the MPC is departing at the end of June.  Only last week, Ms Forbes gave a strong signal that she is on the verge of voting to increase interest rates due to the UK economy’s robust performance since the Brexit vote and the growing risk of significant [...]