Another crucial element is transparency regarding the legal structure of covered bonds, which
includes information on the legal nature of the cover pool, the segregation of cover assets, the insolvency
remoteness of covered bonds, the timely payment in the case of the issuer’s insolvency and on the question
who actually issues the covered bond. Transparency of these aspects is of utmost importance for investors as
covered bonds are designed to survive the issuer’s insolvency. The best cover assets will be of no value for the
investor if they disappear in the issuer’s insolvency estate. The Pfandbrief Act contains detailed regulations of
all these aspects, thus ensuring investors a high degree of product transparency.