General information

Covered bonds are registered or bearer securities issued by a mortgage bank and secured by its loans. PKO Bank Hipoteczny issues covered bonds denominated in Polish złoty or in foreign currencies.

Safety of covered bonds

Covered bonds are characterised by their high level of safety and low investment risk, primarily because the loans that are the basis for issues of covered bonds are properly secured.

The cover pool

The mortgage bank maintains a registry of the collateral for the covered bonds, in which it lists the receivables, rights and means that constitute the cover pool for the issue of covered bonds, as well as the funds that constitute the buffer for the six months of forward interest payments.

The market for covered bonds

In recent years, the European market for covered bonds has grown dynamically, increasing by an average of 8% a year despite the crisis on financial markets.