Practice Areas & Industries: Buchalter Nemer, A Professional Corporation

Practice/Industry Group Overview

Buchalter Nemer’s Covered Bonds Group works with institutional clients to develop loan programs and documentation for the real estate loans to be included as collateral in Covered Bond transactions, and to establish protocols for the purchase of Covered Bonds. The firm’s Covered Bonds Group includes attorneys from Buchalter Nemer’s Real Estate, Tax, Business Practices, and Financial Solutions Practice Groups.

A form of corporate debt instrument that is popular in Europe, covered bonds have been in use for more than a two centuries. Covered bonds are senior debt obligations issued by a financial or credit institution which are backed an identified pool of high quality financial assets—usually mortgage loans or public sector loans. The collateral comprising this "cover pool"  is revolving, and remains on the cover bond issuer's balance sheet.  The cover pool is monitored and, if necessary, replenished, during the course of the covered bond term. Investors are attracted by the additional comfort and security provided by two sources for payment—the covered bond issuer and the cover pool. 

Buchalter Nemer attorneys have significant expertise in complex asset-based and collateralized financings, and servicing arrangements as well as the transactional tax expertise necessary to implement these transactions.