Government assets to back innovative jumbo covered bond

BNP Paribas is planning a €15bn ($19.2bn) covered bond programme that will be backed by government assets, in a sign that banks are finding innovative ways to attract investor interest in the debt markets.

The issuance follows the shockwaves sent through the covered bond market by Standard & Poor's this week, after the ratings agency said more than half of the programmes it rates are in line for downgrades.

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