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Covered Bond ETFs: Everything You Need To Know
May 30, 2012 at 09:00 AM EDT
Last week marked yet another first for the ETF industry, as ProShares rolled out a product that delivers access to a unique corner of the fixed income market. The new ProShares Covered Bond (COBO), as the name suggests, offers access to securities known as “covered bonds.” That name makes reference to a unique form of credit enhancement utilized to lower risk, and distinguish these securities from traditional corporate debt. Most U.S. investors are probably unfamiliar with covered bonds; the market for these securities is small and young in the U.S., though it has been more developed in Europe for much longer. But thanks to COBO and some other recent developments, covered bonds are now becoming widely available to all types of investors [for ETF analysis and insight, sign up for the free ETFdb newsletter]. For those looking for low-risk fixed income securities–and seeking options besides U.S. Treasuries–covered bonds could be [...] Click here to read the original article on ETFdb.com. Related Posts: ETF Insider: Is Spain The New Greece? ProShares Launches Covered Bond ETF (COBO)
Last week marked yet another first for the ETF industry, as ProShares rolled out a product that delivers access to a unique corner of the fixed income market. The new ProShares Covered Bond (COBO), as the name suggests, offers access to securities known as “covered bonds.” That name makes reference to a unique form of credit enhancement utilized to lower risk, and distinguish these securities from traditional corporate debt. Most U.S. investors are probably unfamiliar with covered bonds; the market for these securities is small and young in the U.S., though it has been more developed in Europe for much longer. But thanks to COBO and some other recent developments, covered bonds are now becoming widely available to all types of investors [for ETF analysis and insight, sign up for the free ETFdb newsletter]. For those looking for low-risk fixed income securities–and seeking options besides U.S. Treasuries–covered bonds could be [...]
