Several Spanish covered-bond issuers are failing to comply with new regulations that went into effect in December, according to Moody’s Investors Service. In a special comment, Moody’s stated that because not all banks are complying with disclosure requirements in annual reports, there are inconsistencies in three areas: inclusion of securitized loans in cover pools; the amount of collateral relative to the covered bonds issued; and the definition of an “eligible” asset.

Click here to read the release from Moody’s.