Don't Worry. Stay covered.
Whether you are taking your first steps into investing or are a more seasoned investor, Covered Bonds could be your answer. This asset class is characterised by strong protection and attractive returns. Our range of covered bond strategies benefits from these characteristics while offering you different risk levels tailored to your needs.
Stay covered with Nordea’s Covered Bond solutions.
- Safety first for your lower risk investments
- Low volatility carry
- Alpha generation from an experienced team with a strong record*
*The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
Why covered bonds? For protection.
Highly secured bonds
- If the issuer (a bank or mortgage institution) becomes bankrupt, the covered bonds have priority of payment in liquidation
Supported by a double level of protection (dual recourse)
- Backed by the issuing institution
- Backed by a “cover pool” of highly regulated assets that will cover the bond’s payments if the issuer can’t.
No covered bond has ever defaulted in more than 200 years.
Three covered bond solutions to meet your various risk requirements
Experienced Team of Portfolio Managers
- 22 years average experience
- 15 years average working together
- Manages over EUR 40bn in this highly liquid market
- With a strong track record of outperformance*
*The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of your investment can go up and down, and you could lose some or all of your invested money.
Glossary
Covered Bonds: top ranking corporate bonds with a double layer of protection
Spread Risk: the risk/opportunity arising from the additional bond yield over the risk free rate related to the risk of the issue
Interest rate risk: the sensitivity of a bond or a fund to interest rates, which drive bond prices down when rates go up
Duration hedge: reducing the exposure to interest rate risk, thereby making the fund’s performance less volatile
Fixed Income Rates Team
Multimedia
- 30 January, 2023
- Other
- Video
- 7 January, 2019
- European Covered Bonds
- Video