In terms of developments in the secondary market, the reaction of most European covered bond markets to the announcement of the CBPP was noticeable, and appears to have initiated a declining trend in covered bond yield spreads. This trend increased when the programme was launched, and ultimately, pre-Lehman levels were reached.
This has helped incomes to recover and has supported strong growth in consumption in recent years, with per capita consumption moving back towards its pre-crisis peak.2 The impact of the economic crisis in the South West region (including Cork) and the subsequent recovery has been broadly similar to the national experience.