[co-author: Carlos Juarez]*

Following the financial sector disruptions in 2023, financial institutions turned first to covered bonds for funding and the covered bond market demonstrated its resilience. Just as the covered bond market remained available through the financial crisis in 2008 through 2010, it remained a safe harbor in recent times. Now, four continents (in addition to Europe) have a covered bond framework. The United States remains the only significant market that does not have an efficient legal framework to facilitate issuance. At the end of 2023, there were more than EUR 2.3 trillion in covered bonds outstanding globally. In 2023, issuance of USD-denominated covered bonds increased by almost 9% year-over-year, reaching over $35 billion in covered bonds issued. Canadian issuers lead the issuance of USD-denominated covered bonds, with over $78 billion in covered bonds issued since 2018. In our latest At A Glance infographic, we provide key facts and stats about the covered bonds market.

For the latest on covered bonds, visit www.us-covered-bonds.com/.

*J.D. Candidate

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