covered bond
Definition
A bond or note that is backed by mortgages or cash flows from other debt. If the bond issuer goes into bankruptcy, investors who purchased the bonds can lay claim to the underlying assets.
 Cite this definition
Related Terms
asset-backed security
Related Research Articles from the InvestorGuide.com University
Basic Bond Concepts
Read about the most important fundamental concepts of bonds, including par value, maturity, coupon, nominal and current yield, yield to maturity, and duration. We also explain what the various bond ratings mean.
Municipal Bonds
Learn about the two types of bonds issued by municipal organizations: General Obligation bonds and Revenue bonds, and what the benefits of municipal bonds in general are.
Treasury Bonds
Learn about Treasury Bonds, Treasury Notes, CPI-Indexed Treasury Notes (TIPS) and Treasury Bills. Find out about the pros and cons of these kinds of investments.
Featured Sponsor
|
|
|
