The introduction of a legal framework for covered bonds in Canada has undoubtedly broadened the appeal of these securities, which are backed by both the credit of the bank issuing them and a pool of mortgages on the bank’s balance sheet. 

Already ultra-safe, in the sense that they have a dual guarantee, Canadian covered bonds now benefit from increased disclosure about the mortgages behind them and more certainty about recourse to the cover pool in the event of a default.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.