Blog: VDP secures priority claim on UK assets in post Brexit world – GlobalCapital

The Association of German Pfandbrief Banks (VDP) has developed a contract to ensure Pfandbrief investors’ priority claims on cover pool assets based in the UK following Brexit.

As a result of the UK’s departure from the EU, English courts can now distribute the assets of a defaulting European Economic Area issuer to general creditors under English insolvency law, putting covered bond investors at risk.

Moody’s suggested issuers would mitigate material risks to covered bondholders

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