Housing, the main collateral for covered bonds, contributes more than a third of Europe’s GHG emissions. Yet while climate change can significantly amplify credit risk in covered bonds, mitigation can add more credit risk than actual climate impacts.

Europe’s data centres continue to demonstrate strong credit fundamentals and the growth outlook is positive, underpinned by demand and an under-supply of physical space and power capacity.

Scope Ratings has published the performance overview of notes issued by Marzio Finance, a EUR 10bn securitisation programme backed by ‘cessione del quinto’ and ‘delegazione di pagamento’ (CQS) loans originated by IBL Banca.

Scope’s 12-month trailing ratings drift for structured finance transactions continued its shift into positive territory in the second quarter of 2025, with a positive ratio of upgrades over downgrades not seen since early 2022.

Collections fell 28% in the first half of 2025 compared to H1 2024, confirming the downward trend that began in 2023. All collection strategies contributed to the decline: judicial proceeds fell 30%, DPOs by 27% and note sales by 20%.

Higher mortgage rates have increased pressure on housing affordability. Longer fixed-rate mortgages periods limit the risk of shocks to the banking system and support the resilience of euro-area mortgage markets.

Collections in May 2025 rose 12% month-on-month to EUR 144m but were 38% lower than the average May volumes of the previous three years.

Collections in April declined by 22% month over month and were 35% lower than the April average for the three previous years, indicating a notable slowdown in recovery performance.

Global ABS 2025 kicks off next Tuesday June 10. We are excited to be a Partner Sponsor of this year’s event and are looking forward to engaging with speakers and delegates.

Italian NPL collections in March rose 45% month on month, consistent with previous years. But while monthly volumes bounced back from a poor February, they were still 43% below the three-year March average.