Canadian Mortgage and Housing Corporation Announces Corporate Bond Framework
| Date Published | 12/17/2012 |
| Author | Marja Hoek-Smit |
| Theme | |
| Country |
CMHC announced the details of the legal framework for
Canadian covered bonds. The framework establishes high disclosure standards and
recourse specifications that strike a balance between the needs of issuers and
investors and takes into account evolving international best practice. CMHC is
charged with administering the legal framework for covered bonds under the
recent amendments of the National Housing Act. The framework will operate on a
cost-recovery basis.
Assets which may be held as covered bond collateral include
loans secured by one to four unit residential properties located in Canada.
Insured mortgages are not permitted to be used as covered bond collateral and
covered bond issues are not guaranteed by CMHC or the Government of Canada.
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Other Links
Canada Mortgage and Housing Corporation
National Housing Act
Canadian Registered Covered Bond Guide
Benefits of Legal Framework