Given the firm’s preeminent securitization and mortgage market experience, it is not surprising that the firm counts among its lawyers some of the leading covered bond practitioners. Covered bonds are debt instruments that have recourse either to the issuing entity or to an affiliated group to which the issuing entity belongs, or both, and, upon an issuer default, also have recourse to a pool of collateral (the cover pool) that is separate from the issuer's other assets. Usually, the cover pool consists of high quality residential mortgage loans or mortgage-backed securities. Covered bonds generally are issued by depositary institutions that are regulated entities subject to supervision by banking authorities in their home countries, which ensures that regulators would step in if a safety and soundness issue were to arise.
The firm’s bank regulatory, securities and tax lawyers work with covered bond issuers to establish their issuance programs, assist with offerings in the United States and Europe, and advise on regulatory matters.
US Legislation and Resources
EU Legislation and Resources
- EU Covered Bond Directive (Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU)
- EU Capital Requirements Regulation (Regulation (EU) No 575/2013 of the European Parliament and the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012)
- EU Delegated Regulation to CRR (Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions)
- EU Delegated Regulation to CRR (Commission Delegate Regulation (EU) 2022/786 of 10 February 2022 amending Commission Delegated Regulation (EU) 2015/61 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for credit institutions)
UK Legislation and Resources