[Verse 1] Banks in Europe found a clever way Keep the assets but let investors play Mortgage pools and public sector debt Staying put while funding needs are met On the balance sheet they always dwell European style with a story to tell [Chorus] Covered bonds, they're covered bonds Dual recourse when the music stops Bank plus collateral, safety spawns Never leaving, always watching Two way street when trouble knocks Covered bonds, they're covered bonds [Verse 2] Not like mortgage securities that flee These stay home for all the world to see Regulated pools with substitution rights Keeping ratios within legal sights If the issuer stumbles in the night Collateral pool puts up a fight [Chorus] Covered bonds, they're covered bonds Dual recourse when the music stops Bank plus collateral, safety spawns Never leaving, always watching Two way street when trouble knocks Covered bonds, they're covered bonds [Bridge] Pfandbriefe started this whole game German engineering laid the frame Now across the continent they spread Balance sheet financing never fled Ring fence strong around the pool European markets' favourite tool [Verse 3] Bankruptcy remote but not quite free Issuer liable for what you see Cover pool manager stands on guard Making sure the math is never hard Over-collateralized by law Investor comfort without a flaw [Chorus] Covered bonds, they're covered bonds Dual recourse when the music stops Bank plus collateral, safety spawns Never leaving, always watching Two way street when trouble knocks Covered bonds, they're covered bonds [Outro] Balance sheet resident, investor blessed European style passes every test
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