Resource Items: basics

  • A primer on one of Europe's strongest funding tools
    03/03/2010

    Covered bonds have been a mainstay of European asset-based funding for centuries, but they are still little-known in the U.S.  Here are the ten most important things to understand:

  • Johannes Rudolph spotlights "overlooked" part of covered bond world
    02/26/2010

    "There are currently around EUR 870 billion of privately placed covered bonds, roughly the same volume as for benchmark covered bonds [i.e., issuances of at least €1 billion each, which are typically sold at public auction].  However, private placements are sometimes overlooked in analysis and statistical reports on the covered bond market, despite being the dominant type of issuance in several countries [including Germany]."

  • Graphic includes early issuance by WaMu and Bank of America
    01/27/2010

    This graphic, prepared by Covered Bond Investor™ cofounder Mercy Jiménez, is a timeline showing key events in the (short) history of covered bonds in the U.S.  It includes early issuance by Washington Mutual and Bank of America, which halted as the global economic crisis began to mount.

    To download a PDF, click on "Key Events Graphic" under "Attachment," below.

  • A write-up on CBs from Sydney-based Henry Davis York
    11/30/2009

    "The introduction of a covered bond market into Australia during the current market conditions would help to diversify funding sources leading to a greater degree of financial stability.  It is not surprising, therefore, that covered bonds are currently being considered by Treasury as a potential source of funding for Authorised Deposit-taking Institutions."

  • World's greatest annual source of CB insight & statistics
    09/14/2009

    The European Covered Bond Council's (ECBC's) Fact Book, released in a new edition yearly, is the world's single greatest annual source of information, insight, and statistics on covered bonds.  It is also one of the world's great values—available free as a PDF download.

    Although the focus is naturally on Europe, the book's coverage is broader, including strong technical articles on covered bonds in the U.S. and Canada.

  • Chart includes rarely cited differences with ABS/MBS
    06/23/2009

    Yes, we know—there are already dozens of charts floating around that compare/contrast the key features of covered bonds with ABS/MBS.  The most frequently cited differences for covered bonds relate to dynamic cover pools, dual recourse, reduced prepayment risks, and on-balance sheet obligations.

  • Analysis by Spencer Punnett
    06/10/2009

    Recently a friend sent an email asking for an explanation of what the Federal Deposit Insurance Corporation's (FDIC's) Covered Bond Policy Statement is all about—in the plainest English possible.

  • PricewaterhouseCoopers article covers ample ground in clear language
    03/16/2009

    “With the current financial crisis, the success of the covered bond market in Europe, and the support of the government’s financial leaders, it is increasingly possible that a covered bond market will emerge to complement the current securitization model in the United States.  It is reminiscent of the emergence of the securitization model during the savings and loan crisis of the 1980s.”

  • Recent addition to SIFMA website has info on Steering Committee and more
    02/13/2009

    The U.S. Covered Bond Council is emerging as a central player in the nascent U.S. covered bond market.   It is sponsored by The Securities Industry and Financial Markets Association (SIFMA) and The American Securitization Forum (ASF).

  • Free 341 page download includes chapter on U.S. market
    11/01/2008

    [Editor's note: The book described below has now been superseded by the 2009 edition.]