Covered Bonds under Unconventional Monetary Policy
by Holger Markmann (Author)

About the author
Holger Markmann is PostDoc at the Real Estate Management Institute (REMI) of EBS Universität für Wirtschaft und Recht and Managing Director of a real estate investment firm. His research focuses on real estate capital market financing, bank funding, and unconventional monetary policy. Prior to his current roles, he worked for a bulge bracket investment bank, advising financial institutions on their M&A- and capital market activities.

About this book
Holger Markmann studies covered bonds and their market behaviour upon the announcement and implementation of outright covered bond purchases by the eurosystem. After introducing the covered bond market, its reaction to the global financial crisis, and the functionality of unconventional monetary policy to a broad audience, the author analyzes the impact of these purchases. The first Covered Bond Purchase Programme (CBPP1) has lowered covered bond spreads by 3-4 basis points in the short-term, 10 basis points in the medium-term, and increased emission volumes by euro 103 billion. CBPP2 and CBPP3 have not led to similar effects. However, the programs’ effectiveness relies on the market’s expectations and its prevalent health.

Table of contents
1 Introduction
2 Covered Bond Market
   2.1 Background
   2.2 Supply through Bank Funding
   2.3 Investor Demand
   2.4 Market Structure and Pricing
3 Unconventional Monetary Policy
   3.1 Background
   3.2 Unconventional Monetary Policy in the Eurozone
   3.3 Covered Bond Purchases in other Currency Areas
   3.4 Transmission Mechanism
4 Impact on Emission Activity
   4.1 Data and Methodology
   4.2 Results
   4.3 Subsidiary Conclusion
5 Medium-term Impact on the Secondary Market
   5.1 Literature
   5.2 Data and Methodology
   5.3 Results
   5.4 Subsidiary Conclusion
6 Short-term Announcement Impact on the Secondary Market
   6.1 Literature
   6.2 Data and Methodology
   6.3 Results
   6.4 Subsidiary Conclusion
7 Monetary Policy Implications
   7.1 Periods of Bank Funding Stress
   7.2 Sovereign Debt Crises
   7.3 Periods of Deflationary Pressure
8 Conclusion
   8.1 Research Deficiencies and Opportunities
   8.2 Summary
List of References
Appendix
   Appendix 1: Goals of CBPP1 to CBPP3
   Appendix 2: Unit Root Test

Series: Essays in Real Estate Research (Book 14)
Hardcover: 120 pages
Publisher: Springer Gabler; 1st ed. 2018 edition (February 2, 2018)
Language: English
ISBN-10: 3658209747
ISBN-13: 978-3658209742