Covered bond

How it is used

Dual recourse is central to the term; eligible assets and legal protections vary by framework.

Example sentences

1. The bank issued a covered bond backed by a pool of residential mortgages.

   The designated assets support the bond alongside the issuer's obligation.

2. Analysts examined both the covered bond issuer and the cover pool.

   Credit assessment considers the two sources of recourse.

Common collocations

• covered bond programme
• covered bond cover pool

Related terms

• bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
• collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.

More terms: Corporate Finance

• cash flow
• capital
• working capital
• leverage
• dividend
• valuation
• M&A
• IPO
• due diligence
• shareholder
• raise capital
• issue