Bringing greater transparency to Standard & Poor's covered bond rating process - and greater confidence to your covered bond analysis.
Covered Bond Monitor is the tool Standard & Poor's covered bond rating analysts use to quantitatively assess whether the reported cash flows of a particular covered bond pool are eligible for a target rating level - typically "AAA." This tool is designed to complement other quantitative and qualitative evaluations.
A desktop-based program, Covered Bond Monitor brings important transparency to the widely varying degrees and types of risks related to individual issuers and countries, including liquidity, credit, interest and currency risks. Users simply input relevant data of a given pool into a Microsoft® Excel® "input template," which is then read & analyzed by Covered Bond Monitor.
Designed for use in relevant European markets*, Covered Bond Monitor is available either via the Web or CD-ROM to authorized users. Its use is complimentary for financial institutions that issue or wish to issue covered bonds with a Standard & Poor's rating.
Benefits
Increased understanding of Standard & Poor's covered bond rating process
Greater confidence that a given pool may be quantitatively eligible for a certain Standard & Poor's rating (typically "AAA")
The flexibility to analyze user-defined scenarios and conduct dynamic analysis for ongoing pool management
Easier, more effective comparison of different covered bond pools
Enhanced performance-monitoring of existing programs
Simplified results interpretation through the use of easy-to-understand charts and graphs
*Covered Bond Monitor is currently used for covered bond issued in Germany, France, Ireland, Luxembourg, Austria and Scandinavia (Available Q2 2006: Finland, Sweden, Norway, Denmark). Standard & Poor's has analyzed the legal framework of these jurisdictions and expressed the opinion that a quantitative model such as Covered Bond Monitor could be used in each of them as part of the rating process.
