Covered Bonds Introduction
Tim delves into covered bonds and key ratios when analysing them. He includes the safety features against a debtor including credit enhancements.
Overview
Covered bonds are a cheap form of funding that are low risk because they are backed by underlying assets. Regulation heavily supports covered bonds in order to protect investors from any downside risk or asset encumbrance. Banks can even enhance the safety of covered bonds by providing more collateral to back the bond than the size of the bond itself.
Key learning objectives:
Describe the cost effectiveness, risk profile and returns of covered bonds
Describe the regulations and methods of investor protection
What is the downside of asset backed securities and credit enhancements?
Summary
Expert
Tim Skeet
Banker with more than 35 years experience in the financial markets. Tim has been an ICMA board member and an ECBC steering committee member. Tim is a Freeman of the City of London.
03:24
04:22
