ING IM unveils European covered bond strategy

ING Investment Management is set to unveil a Euro Covered Bond fund aiming to offer investors low risk access to the European corporate bond market from issuers including banks.

Covered bonds are backed by assets including mortgage loans or cashflows from other debt.   They have become popular recently, according to ING IM’s head of investment grade credit, Roel Jansen, who said: “The market for covered bonds has grown very rapidly as they have established themselves as a major source of funding for banks in the current financial turmoil. “They enjoy institutional support evident in the launch of a second ECB Covered Bond Purchase Programme of €40bn and low risk weightings.” Co-manager Dirk Frikkee said most covered bonds carry ratings of AA or AAA and all...