Covered bond

Since July 8 th 2022, Austrian Covered Bonds are issued based on a single uniform law - Pfandbrief Act (PfandBG) - since 2022. The mortgage bonds are secured by a cover pool of mortgage loans held in trust. The PfandBG stipulates that in the event of an issuers insolvency, investors must be satisfied on a priority basis. In the event of a creditor bail-in, the cover pool remains unaffected.