Question #36
Reading: Reading 28 Credit Analysis Models
PDF File: Reading 28 Credit Analysis Models.pdf
Page: 14
Status: Correct
Correct Answer: C
Question
As compared to other secured debt, investors in a covered bond have:
Answer Choices:
A. an embedded put option
B. an embedded conversion option
C. recourse rights
Explanation
Covered bonds are backed by the collateral pool as well as by the issuer; investors in
covered bonds have recourse rights.