Chile Covered Bond Framework Lacking: Fitch

Chile Covered Bond Framework Lacking: Fitch

Chile Structured Finance

The regulatory framework for Chile’s bonos hipotecarios, or covered bonds, compares poorly to other jurisdictions, Fitch says, especially given protections covered bond investors expect in other places. “Chilean mortgage bonds rank poorly in terms of discontinuity risk and overall recovery potential,” the agency says, noting several different problems. As the bonds can be transferred instead of being due and payable if the issuer becomes insolvent, a pause in payment is possible. “In the event o

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