This is notwithstanding the fact that covered bonds are senior in the creditor queue. While the cost of the first wave of covered bond issuance by the Australian banks has been high, it is broadly comparable to that of recent covered issuance by banks in other jurisdictions where there has been a similar step up in cost (Graph 3).
Amando M Tetangco, Jr: Security management – a challenging balancing act Speech by Mr Amando M Tetangco, Jr, Governor of the Central Bank of the Philippines (Bangko Sentral ng Pilipinas), at the Bank Security Management Association, Inc. (BSMA) Induction, Central Bank of the Philippines, Manila, 16 January 2009.