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
UK Legislation and Resources
- The Regulated Covered Bonds Regulations 2008 (SI 2008/346)
- FSA Regulated Covered Bonds Sourcebook (part of the FSA Handbook)
- FSA factsheet on the UK Regulated Covered Bonds regime
- FSA Regulated Covered Bonds Register
- Application for registration and other relevant forms for Regulated Covered Bonds
- FSA's 23rd October 2008 Letter to the BBA on Covered Bond Issuance and Asset Encumbrance