EuroCatalyst

EuroCatalyst 2003: Competition and convergence in European housing finance and fixed-income investment

Final program
DAY 3 Friday, 24 October 2003
Advances in European covered bonds

(Click here for the final program for Day 1)
(Click here for the final program for Day 2)

MORNING CHAIR /Alexandra Sleator, senior vice president, coordinator for European covered bond ratings, Moody's Investors Service
SESSION 1 0830-0900 [ballroom]	BOARD ROOM – CONVERGENCE BETWEEN STRUCTURED FINANCE AND COVERED BONDS: THE EMERGENCE OF EUROPEAN STRUCTURED COVERED BONDS
	As the covered bond market continues to grow in importance, issuers have begun to combine the benefits of existing bond frameworks with securitisation techniques to enhance ratings or reduce rating volatility. In jurisdictions without covered bond laws, originators are financing asset portfolios by issuing on-balance sheet bonds without using the standard SPV of securitisation. This sessions provides an insight into the convergence where funding in European markets are headed.
	Annick Poulain, senior vice president / RMBS team leader / coordinator for European structured covered bonds, Moody's Investors Service Alexandra Sleator, senior vice president / senior banking analyst / coordinator for European covered bonds, Moody's Investors Service

SESSION 2 0900-0930 [ballroom]	BOARD ROOM – ONE-ON-ONE Toni Moss interviews Karsten von Köller, CEO, Eurohypo
0930-1000: MORNING REFRESHMENT BREAK
SESSION 3a 1000-1200 [ballroom]	BOARD ROOM – SETTING THE STAGE / Moderator: Alexandra Sleator, Moody's Investors Service
	This session will provide an overview of latest legislative developments (amendments, reforms and new frameworks) and look at key features (how they differ across countries and the implication of their ratings for investors in European covered bonds.) David Liu, vice president / international markets, PMI Europe Robert Liao, director, Citigroup Global Markets PORTUGAL / Filomena Oliveira, manager, Caixa Geral de Depósitos The road to covered bond legislation / vs. securitization / legal objectives SWEDEN / Fanny Borgström, head of group funding, Nordea AB Sweden's road to covered bonds: the influence of Denmark and the challenges of conversion GERMANY / Louis Hagen, general manager, Verband Deutscher Hypothekenbanken Amendments to Germany's Mortgage Bank Act (past and future) The importance of the 'Specialist Bank Principle' Mitigating market risks: evolution of the German regulatory framework (from the "traffic lights of 1998 to the NPV cover requirement of this year). DENMARK / Torben Gjede, director general, Realkreditrådet Description of a Mortgage Credit Institution Denmark's multiple LTV levels differentiate well between credit risk categories; The Danish "Balance Principle": still unequaled? LUXEMBOURG / Jean-Luc Spetz, managing director, EUROHYPO Europäische Hypothekenbank SA The example of Luxembourg as a concentrated market Why the Luxembourg framework authorises asset origination throughout the OECD: pros and cons BALTIC AND CEE COUNTRIES / Otmar Stöcker, managing director, Verband deutscher Hypothekenbanken Covered bond framework Mortgage registration, efficiency of collateral, credit and market risk monitoring tools


SESSION 3b 1000-1200 [Marquês de Pombal]	WORKSHOP – ALTERNATE FUNDING STRATEGIES: THE EUROCATALYST 2003 WORKSHOP ON WHOLELOAN SALES, TRADES AND BOOK TRANSFER with special thanks to Mortgages plc As European funding alternatives continue to diversify and balance sheet re-engineering moves into high-gear, whole loan sales have proven to be an effective funding alternative, allowing lenders to accelerate new business and achieve lending targets through the bulk acquisition of whole loan portfolios. In the UK the market has grown dramatically, from £350 million in 1998 to £1.1billion in 2001. GMAC-RFC established the leading high-profile position as "creator and trader" of mortgage assets in 2002 when it sold £650 million to Bradford and Bingley in a single transaction. Since 1998 insurance companies in the Dutch market have quietly moved portfolios off their balance sheets on a monthly basis. The Italian market has been among the first to develop a thriving industry sub-sector in the trading of non-performing loans similar to the bulk sales characteristic of the US market with the savings and loan failures in the 1980s. The clean up of the US market led to a new secondary market evolution for non-, sub- and re-performing loans. In August of this year ABN Amro won a closely contested auction to purchase €2.6 billion residential mortgage portfolio of Belgian state-owned Credibe. Credibe launched the auction to reduce its sovereign-debt. Confident that investors are keen to diversify, ABN Amro expects a good response and prices when the portfolio goes back on the market through its multi-seller conduit Tulip Funding. The current volume of transactions indicates a vast and growing European market to provide a cost-effective way for lenders to increase their assets and diversify their overall book while reducing fixed costs or strategies that conflict with core operations or capabilities. For intermediaries, whole loan sales provide a wider range of products and consistent source for those products. Customers benefit from greater choice, and more competitive and transparent products. This workshop explains how a pan-European whole loan sale market will develop, and hands-on practicalities for buying and selling whole loan portfolios. Workshop sponsor: Mortgages plc Workshop lead: Matt Gilmour, Panellists: Paul Fryers, Mortgages plc, Charles Schofield, CS Portfolio Services
1200-1300: LUNCH
SESSION 4a 1300-1400 [ballroom]	REGIONAL MARKET – FRANCE	SESSION 4b 1300-1400 [Marquês de Pombal]	REGIONAL MARKET – NORDIC COUNTRIES
	SESSION CHAIR Alexandra Sleator, Moody's		SESSION CHAIR Torben Gjede, director general, Realkreditrådet
	PANELLISTS Annick Poulain, senior vice president, Moody's Thierry Dufour managing director, Compagnie de Financement Foncier Nathalie Fontaine-Aubin, head of funding, Caisse Centrale du Crédit Immobilier de France (3CIF) Henry Raymond, chief executive officer, Caisse de Refinancement de l'Habitat Jean-Claude Synave, managing director, Dexia Municipal Agency		PANELLISTS • Pernille Lohmann, chief analyst / head of rating and capital management, Danske Bank • Fanny Borgström, head of group funding, Nordea AB • Göran Zakrisson, senior vice president, AB Spintab • Svein Ivar Mossige, senior trader, DnB Markets • Timo Pietilä, managing director, Aktia Real Estate Mortgage Bank
	• mortgage lending dynamics today: property ownership levels, interest rate environment, mortgage lending vs. "crédit cautionné", Prime-2 lending dynamics in France, the search of industrialized mortgage platforms • recap of ways to fund mortgage loans in France: deposits / CBs / (R)MBS • the historical player: • CRH: its characteristics up to 1999 • CRH as a quasi-SCF since 1999 ? • why not a greater role (e.g. Freddie Mac ?) • today's SCFs: issuers present to explain their differences and similarities (e.g. asset base, market risk tolerance, funding spreads, bond characteristics)		Denmark • capital centers vs. mortgage credit institutions as issuers • is the Danish framework too restrictive: origination issues / funding specificities, e.g. callable features of Danish mortgage bonds • the impact of (eventual) EMU on investor base Finland / Sweden / Norway • compare and contrast with Danish model: why their frameworks differ / what funding objectives do they have • market size issues: Finland and Norway are new markets while Sweden could convert overnight into the third largest mortgage bond market in Europe • competitive dynamics of the Nordic covered bond instruments

SESSION 5 1400-1530 [ballroom]	REGIONAL MARKET – GERMANY
	SESSION CO-CHAIRS Louis Hagen, general manager, Verband deutscher Hypothekenbanken Alexandra Sleator, Moody's Investors Service
	PANELLISTS • Walter Groll, head of capital markets, HSH Nordbank • Arndt Hallmann, head of capital markets / treasury, Stadtsparkasse Köln, • Hartmut Rahner, director treasury, Deutsche Genossenschafts-Hypothekenbank • Michael Zlotnik, director, Standard & Poor's • Iain Barbour, Commerzbank Securities Overview of major changes in the German Market • evolution of the Mortgage Banking Act: objectives / tradeoffs for other debt holders • public-sector banks: funding for the Landesbanken post-2005 / the role of the savings banks in the Pfandbrief market • securitization: the KfW platform / Pfandbrief repackaging (e.g. Duke deal) • Pfandbrief and securitization: complementarity or substitution?

SESSION 6 1530-1600 [ballroom]	BOARD ROOM – CLOSING SESSION: CONVERGENCE REVISITED Toni Moss, founding partner, EuroCatalyst Shirley Jackson, founding partner, EuroCatalyst
© 2003 EuroCatalyst BV