Covered bonds are issued by a financial institution (e.g. bank) & include a claim on both issuer's assets & an additional collateral in the form of a pool of assets

Covered bonds are issued by a financial institution (e.g. bank) & include a claim on both issuer's assets & an additional collateral in the form of a pool of assets

Investor has double recourse on issuer's default event:
1️⃣ Issuer's assets
2️⃣ Collateral pool