Untitled edit

Does this means that if Assest Price goes down then the bond is no longer covered?

Didn't a lot of people in Hong Kong lose their house when their house price went down and the Banks asked them to cover the difference? - I don't think so. It should be issued over asset pool as they are, no more responsibility from the owner of collateral.

Incorrect statement edit

>>Covered bonds are debt securities backed by cash flows from mortgages or public sector loans.

This statement is wrong, or at least heavily misleading. A covered bond is, as discussed further down in the intro, a bond issued by a bank or mortgage originator. It is backed by collateral, but the primary claim is still against the issuer. Very different from a securitisation, the obligation of the issuer does not change if underlying assets are impaired. — Preceding unsigned comment added by 80.0.27.153 (talk) 15:13, 26 January 2017 (UTC)Reply

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