Mortgage Bonds

According to the Section 14 Subsection (1) Jht. the Mortgage loan companies shall at all times have collateral assets covering all obligations related to the mortgage bonds in circulation.

The protection of the investors: In order to protect investors, Jht. and other laws contain additional strict regulations:

• Special supervisory supervision: Pursuant to the Jht. rules, MNB is obliged to have an onsite inspection at mortgage banks on annual basis.
• Increased transparency: Mortgage banks are obliged to inform the public on a quarterly basis about the value of the outstanding mortgage bonds and the available collateral. Moreover, MBH Mortgage Bank semi-annually publishes the quick reports on its previous half year performance, and also updates the Transparency Report on quarterly basis on its website, in line with the requirements of MNB and CRR 129.
• Rating: (S&P) further information about the mortgage bonds issued.

Special security features and risk mitigation factors described above make it attractive to buy and hold mortgage bonds, but in addition to these, there are other characteristics that are worth considering for potential investors. The Covered Mortgage Bonds issued by the MBH Mortgage Bank are

• publicly issued securities,
• offer medium and long term investments, having 3-5-10-15 year tenor,
• listed on the stock exchange,
• less risky compared to other similar assets (senior unsecured bonds),
• provide higher yields than government securities, and
• special transparency requirements are associated with it.