Covered Bond
Covered bonds are securities that are backed by debt, such as mortgage loans. Because they’re backed by debt, the cash inflow from these debt sources makes the bonds “covered,” per se.
Covered bonds make for safer investments, because they're backed by cash that’s always coming in from a bunch of places. If the financial institution offering covered bonds tanks, investors still get their money from the underlying assets.
Related or Semi-related Video
Finance: What is Dead Cat Bounce?13 Views
Finance allah shmoop What is a dead cat bounce It
sounds like a dance move from the old west right
but it actually refers to a terrible situation when the
market plummets rebounds very slightly and then plummets again The
idea comes from the notion of dropping a cat off
of a high building It hits the cement dead bounces
a bit before then is a big wet thud Yeah
peeta no cats were harmed in the production of this
definition Thie market has fallen from five thousand twelve hundred
now it's at fourteen hundred and now it's back to
twelve hundred Yeah that uplift of two hundred points there
from twelve hundred fourteen hundred before it went back twelve
hundred which is the concrete that's the dead cat bounce
I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea
Up Next
What is short covering and squeezing the shorts? Hit play to find out.
What's the long and short of short sales and shorting stock? Hit play to find out.