Covered Bond

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Dictionary Says

Definition of 'Covered Bond'

Securities created from public sector loans or mortgage loans where the security is backed by a separate group of loans. Covered bonds typically carry a 2-10 year maturity rate and enjoy relatively high credit ratings, depending on the quality of the pool of loans ("cover pool") backing the bond. Covered bonds are often attractive to investors looking for high-quality instruments that offer attractive yields. They provide an efficient, lower-cost way for lenders to expand their business rather than issuing unsecured debt instruments.
Investopedia Says

Investopedia explains 'Covered Bond'

Covered bonds originated in the European bond market. As of 2009, 24 European countries allow covered bond instruments to be originated and sold; each country has rules in place governing the investment. The EU created guidelines for covered bond transactions in 1988 that allowed investors to invest more of their assets in covered bonds over previous limits. The U.S. entered the covered bond market in 2006 but the financial services sector meltdown of 2007-2009 slowed the market's potential growth.
Search results for

'Covered Bond'

  • Find Security In Covered Bonds

    http://www.investopedia.com/articles/bonds/09/covered-bonds.asp
    ... Since that time, 24 other European countries have adopted the use of the covered
    bond, although each has unique laws governing their structure. ...

  • Series 65 Study Guide - Regulation of Broker-Dealers and ...

    http://www.investopedia.com/exam-guide/series-65/broker-dealers-securities-registration/state-authority-federal-covered-securities.asp
    ... Dealer Regulation; 2.3 Securities Regulation; 2.4 State Authority over Federal Covered
    Securities. ... 8.3 The Federal Reserve; 8.4 Bond Yields; 8.5 Yield Curves; 8.6 ...

  • Series 66 Study Guide - Regulation of Securities - Federal Covered ...

    http://www.investopedia.com/exam-guide/series-66/regulation-of-securities/federal-covered-securities.asp
    ... Regulation of Securities - Federal Covered Securities. Federal covered
    securities are exempt from state registration. The USA defines ...

  • CFA Level 1 Study Guide - Derivatives - Managing Risk with Options ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/managing-risk-options-strategies-covered-calls-protective-puts.asp
    ... 13.13 Technical Analysis; 13.14 Using Price Multiples. 14. Fixed Income Investments:
    14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon Structures; ...

  • Credit Crisis Part 2?

    http://stocks.investopedia.com/stock-analysis/2010/Credit-Crisis-Part-2-F-UIS-ETFC-MCO0211.aspx
    ... debt could be rolled over given the risk aversion in the credit markets.
    The study covered bond debt and bank credit facilities. ...

  • Downgrade Moody's?

    http://stocks.investopedia.com/stock-analysis/2011/Downgrade-Moodys-MCO-MHP-XLF-KBE-BAC-HBC1229.aspx
    ... Taking into account the mess Europe is in, covered bond issuance may be relatively
    strong in the coming months because it is considered one of the safer ways ...

  • Is Your Mutual Fund Safe?

    http://www.investopedia.com/articles/mutualfund/07/mf_safe.asp
    ... For example, a big corporate bond investor, such as a pension fund, might buy ... do
    companies benefit from interest rate and currency swaps?) 2. Covered Calls A ...

  • Bond Basics: Introduction | Investopedia

    http://www.investopedia.com/university/bonds/
    ... The swings in the market are scrutinized in the newspapers and even covered by local ...
    is a bear market to remind investors of the virtues of a bond's safety and ...

  • Bond Basics: Introduction | Investopedia

    http://www.investopedia.com/university/bonds/default.asp
    ... The swings in the market are scrutinized in the newspapers and even covered by local ...
    is a bear market to remind investors of the virtues of a bond's safety and ...

  • Bond Basics: Introduction | Investopedia

    http://www.investopedia.com/university/bonds
    ... The swings in the market are scrutinized in the newspapers and even covered by local ...
    is a bear market to remind investors of the virtues of a bond's safety and ...

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