Bank of Russia included the mortgage bonds in the mortgage list - Ulyukayev

Bank of Russia included in the mortgage list mortgage bonds, in favor of which exhibited guarantees beneficiaries, said the first deputy chairman of the Central Bank of Russia Alexei Ulyukayev.

"Costoyalsya Board of Directors, which decided ... to include mortgage bonds in the collateral list" - he said during a speech in Zurich at the seventh session of the Russian Economic and Financial Forum (Forum FINAS).

These bonds are to be exhibited guarantees beneficiaries, ie the banks, which initiated the deployment of such bonds.

Typically, such paper puts not the bank or company, and specially created legal entity. It is they who should be put safeguards.

The beneficiaries, according to Ulyukaev, will have to have the same rating that is set in the criteria for inclusion of securities in the mortgage list for guarantees.

In Lombard list CBR are securities used as collateral for loans provided by the Central Bank. And it is for repo operations, Lombard and domestic credit, overnight.

The inclusion of mortgage bonds in the mortgage list is a significant step towards creating a demand for mortgage-backed securities in the country. For the inclusion of these securities in the lineup AHML, which buys pools of mortgages from banks and then securitize them.

Typically, these issues are divided into tranches with varying degrees of risk for investors. Often up to 80% of these issues are the least risky, but the least profitable so-called senior tranches. At such bonds demand, usually small, since the investor essentially has the aim to earn a return.

Due to the inclusion of such bonds in tranches of mortgage list of potential buyers, the banks an opportunity to build upon their acquisition of securities in securities and to borrow at relatively low market interest rates and bolster their liquidity.

Topic: FINAS, CBR, AHML