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ProShares Launches Covered Bond ETF (COBO)
May 23, 2012 at 07:00 AM EDT
ProShares, the issuer behind a number of the ETFs offering exposure to alternatives, has notched another first for the ETF industry this week with the debut of a Covered Bond (COBO) product. The new ETF will seek to replicate the BNP Paribas Diversified USD Covered Bond Index, a benchmark that includes dollar-denominated covered bonds that are generally rated AAA. Covered Bonds 101 Covered bonds are a unique type of debt instrument, generally issued by financial institutions and secured by a separate group of assets known as a “cover pool”. The so-called cover pool can include various types of assets, but generally includes mortgages and public sector loans. Covered bonds are similar to traditional corporate bonds in that they originate from corporate issuers, and are similar to asset-backed securities created through securitization [see also Bond ETFs For Every Objective]. Holders of covered bonds have senior unsecured claims against the issuing financial [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
ProShares, the issuer behind a number of the ETFs offering exposure to alternatives, has notched another first for the ETF industry this week with the debut of a Covered Bond (COBO) product. The new ETF will seek to replicate the BNP Paribas Diversified USD Covered Bond Index, a benchmark that includes dollar-denominated covered bonds that are generally rated AAA. Covered Bonds 101 Covered bonds are a unique type of debt instrument, generally issued by financial institutions and secured by a separate group of assets known as a “cover pool”. The so-called cover pool can include various types of assets, but generally includes mortgages and public sector loans. Covered bonds are similar to traditional corporate bonds in that they originate from corporate issuers, and are similar to asset-backed securities created through securitization [see also Bond ETFs For Every Objective]. Holders of covered bonds have senior unsecured claims against the issuing financial [...]
