... levels have risen during the last year for most programmes. Average nominal OC has increased to 135% as of end-1H14, from 120% one year earlier as covered bonds (CvBs or cTdulas) have been amortised at a higher rate than the decrease of cover pools against which they are secured. Issuers liquidity positions and funding sources have also improved. No significant CvB buybacks are expected in the near term so OC levels should be stable, varying across programmes depending on CvB amortisations. Portfolio Shrinking: Total outstanding mortgage debt in Spain has decreased to EUR735bn as of July 2014 from the EUR1,075bn peak at end-2010. Fitch Ratings expects this trend to continue during 2015 at a slower pace. The incipient revival of mortgage lending is still not sufficient to compensate cover pools amortisations. 1Q14 saw the highest number of property sales registered for a first quarter since 2010. The trend is an indication of the return of...
