Security covenant test earns good marks

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.”

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