Covered bonds:

Name: Covered bonds:
Brand: Quizplus
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Question

Covered bonds:

Quizplus · Accepted Answer

Covered bonds are issued by a bank, backed by a pool of assets, which remain on the balance sheet of the issuing bank. They were introduced prior to the GFC as a funding tool, but their use became more common following the GFC as they provide a secure source of funding for banks, helping to ease liquidity pressures on their balance sheets. Covered bonds are not issued by the Reserve Bank of Australia and the assets backing them are not off-balance-sheet items.

Covered Bonds