Monthly Archives - November 2018

Covenant test provides evidence of sound security

The latest review of security cover for REAL Bondholders – comparing the value of bonds against the value of property security – shows an average loan-to-value ratio of below 25%. A figure below 50% implies that sufficient returns would be generated to redeem Bondholders’ investments even if property values were to slump by half. REAL director Alan Bate comments, “The current low loan-to-value level reflects our increased focus on well-secured first-charge lending. Whilst some individual loan arrangements including [...]