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Basic Question 2 of 2

Which statement regarding covered bond is TRUE?

A. A covered bond is typically issued by a SPE.
B. It has a multiple tranche structure.
C. Its covered pool is made up of mortgages and public sector loans.

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Craig Baugh

Craig Baugh

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.