Greek covered bonds should perform against ItalianWith ECB repo eligibility in the offing, Greek banks will be incentivised to follow National Bank of Greece (NBG) which trailblazed this week with its investment grade covered bond rating. And, in contrast to Italy, Greece benefits from a stable fiscal and political backdrop, and is poised to exit from its bail-out programme, boding well for further sovereign rating upgrades. That could make Greek covered bonds stronger performers than the Italian versions.

With ECB repo eligibility in the offing, Greek banks will be incentivised to follow National Bank of Greece (NBG) which trailblazed this week with its investment grade covered bond rating. And, in contrast to Italy, Greece benefits from a stable fiscal and political backdrop, and is poised to exit from its bail-out programme, boding well for further sovereign rating upgrades. That could make Greek covered bonds stronger performers than the Italian versions.http://www.globalcapital.com/article/b1918z2tw4jxms/greek-covered-bonds-should-perform-against-italian[Collection]