Covered bonds are like special loans from banks. They're safer than regular loans because they have extra protection!
Imagine you lend money to a bank. With a covered bond, the bank promises to pay you back, but there's more! They also use other safe things, like home loans, to guarantee your money.
This makes covered bonds less risky.
- Banks promise to pay you back, even if things go wrong.
- They use safe investments to protect your money.
- They are very safe investments.
| Feature | Description |
|---|---|
| Safety | Very safe because of extra protection. |
| Returns | Steady, but not super high. |
| Where to find them | More common in Europe than the US. |
