Covered Bonds: Credit and Market Risk

Introduction: The goals of this section are to highlight motivations of issuers and investors in the covered bond market and to establish a framework of analysis for covered bonds. Risks to repayment: The goal of this section is to consider, from a rating agency and investor perspective, risks related to the different sources of covered bond payments and to continuity of payments should an issuer default. Structure: The goal of this section is to understand how the legal frameworks governing bonds and terms and conditions address repayment risk. Monitoring Performance: The goal of this section is to examine how market conditions affect the performance of covered bonds.