Covered Bonds under Unconventional Monetary Policy

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The study delves into the behavior of covered bonds in response to the eurosystem's outright purchase programs. It outlines the covered bond market's dynamics, particularly during the global financial crisis, and assesses the impact of the first Covered Bond Purchase Programme (CBPP1), which notably reduced spreads and increased emission volumes. In contrast, subsequent programs, CBPP2 and CBPP3, did not replicate these effects, highlighting the importance of market expectations and overall market health in determining their effectiveness.