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Basic Question 1 of 2
The main difference between covered bonds and otherwise similar securitized bonds is that ______
B. covered bonds offer higher yields than securitized bonds.
C. covered bonds are usually insured by large insurance companies.
A. covered bond assets remain on the issuer's consolidated balance sheet.
B. covered bonds offer higher yields than securitized bonds.
C. covered bonds are usually insured by large insurance companies.
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | This is because the securitie is not transfered to a third party like securitized bond after are ( assumed by a insurer responsible for the repayment) |
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Learning Outcome Statements
describe characteristics and risks of covered bonds and how they differ from other asset-backed securities
CFA® 2024 Level I Curriculum, Volume 4, Module 18.