The characteristics are divided into two groups:

  • The CB programme is embedded in a dedicated national CB legislation
    - The bond is issued by a credit institution subject to public regulation and supervision
  • If this is not the case, bond holders have full direct/indirect recourse
  • The credit institution’s obligations in respect to the cover pool are supervised by public supervisory authorities
  • Bond holder have a dual claim against:
    - The issuing credit institution
     - A cover pool of financial assets, ranking senior to the unsecured creditor
  • The credit institution has the ongoing obligation to maintain sufficient assets in the cover pool to satisfy the claims of covered bond holders at all times
  • Issuers must provide regular information enabling investors to analyse the cover pool in accordance with the Harmonised Transparency Template and Article 129(7) of the CRR.

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Finance Denmark is a business association for banks, mortgage institutions, asset management, securities trading and investment funds in Denmark. Our members are mortgage institutions, banks, savings banks, cooperative savings banks, Danish branches of foreign banks, asset managers, Danish securities dealers and investment funds.

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