Asian investors, primarily central banks, are moving beyond Pfandbriefe to begin investing in covered bonds from France, Spain and, to a lesser extent, Ireland and the UK. The foreign exchange management arm of the People’s Bank of China, the State
Administration of Foreign Exchange, is foremost among Asian covered bond investors. India’s central bank is awaiting government approval to invest in the asset class.
“Traditionally, the Asian central banks invest a quite large percentage of their