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Level II
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Fixed Income
Fixed Income
Medium
Compared to a standard asset-backed security, a covered bond provides investors with additional protection primarily through:
A
Dual recourse — investors have claims on both the segregated cover pool and the issuing institution.
B
A static asset pool that prevents the issuer from removing high-quality collateral.
C
A higher level of subordination that absorbs losses before senior tranche holders.
D
Bankruptcy remoteness that fully insulates the cover pool from the issuer's creditors.
Select an answer to continue
Tags
#covered-bonds
#dual-recourse
#abs
#fixed-income
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