Covered bond
Cédula hipotecaria
- Date
- 1769 · confidence high
- Place
- Wrocław, Lower Silesia, Poland
- Credited to
- Frederick II of Prussia
- Field
- Tools
What it is
A debt security collateralized by a pool of assets, first issued as a Prussian Pfandbrief by order of Frederick II in Silesia, the precursor of the modern covered bond.
What it led to
- gave rise to the modern market for covered bonds (Pfandbriefe)
- became a model for mortgage bonds in many European countries
- influenced the regulation of dual-recourse asset securitization