Resource Items: basics

  • World’s greatest annual source of CB insight & statistics
    09/22/2010

    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.

  • Ten page document from DBRS rating agency
    09/22/2010

    The following was adapted from an announcement by DBRS:

    In a commentary published Sept. 21, Canadian rating agency DBRS has provided a comprehensive review of the Canadian covered bond and residential mortgage markets.

    Detailing the history and current status of the covered bond programs established by Canada’s five largest banks, the commentary provides in-depth analysis of the residential mortgage market and the liquidity of residential mortgage loans in Canada.

  • A year’s worth of developments & stats on German covered bonds
    09/14/2010

    If German Pfandbriefe (legislatively established covered bonds) are the “gold standard” for covered bonds, the Association of German Pfandbrief Banks (vdp) may be considered the bedrock of the Pfandbrief.  The vdp’s 35 member institutions include many of Germany’s best-known Pfandbrief issuers.

  • 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.