(a) Explain the main features of covered bonds that make them an attractive form of bank-issued instruments to market investors. (b) Are covered bonds subject to the moral hazard problem commonly associated with securitization? Why or why not

Answer rating: 100% (QA)

a Covered bonds are a type of debt instrument issued by banks that are backed by a specific pool of highquality assets such as mortgages or public sec... View the full answer