The first covered bonds were issued over 250 years ago and are seen today as a safe and risk averse asset – their investments are typically used to fund mortgages and other public sector assets. CBs grew in popularity during the 90’s/00’s via HBOS and survived the 2008 Financial Crisis.
Key learning objectives:
Outline the history of covered bond markets
Identify the properties of the modern covered bond market
Describe how the jumbo covered bond birthed liquidity
Explain how the market grew as a result of HBOS and whether it stood the test of the financial crisis