The cover pool comprises loans with low loan-to-value (LTV) ratios. The available credit enhancement exceeds what is required to achieve a 'AAA' rating. The program benefits from a public commitment to maintain a level of overcollateralization that is consistent with the rating. Furthermore, liquidity risk is covered through the soft-bullet repayment profile of the bond. High asset-liability mismatch in the covered bond program, given that there is a single covered bond outstanding with a relatively short maturity. The structure benefits from an interest rate swap, but we do not give credit to it in our analysis given that it does not comply with our counterparty criteria. Almost 50% of the pool comprises housing associations, which we view as a higher
