Senior unsecured bonds, covered bonds and asset backed securities in a portfolio approach to bank funding

This short paper addresses the medium term prospects of the capital market funding of European, in particular euro area, banks. It does so from a high level perspective, not going into any detail, thus neither fully taking into account the different situations, in terms of sovereign debt stress, prevailing in different jurisdictions of the euro area, nor distinguishing between euro and dollar funding.

The paper starts by recalling that a portfolio approach is as necessary in …