Print preview

What is a covered mortgage bond?

The main source of financing mortgage lending activities in Hungary is the issuance of Covered Mortgage Bonds (CMB).

This type of fixed income instrument was introduced into the Hungarian capital market by the FHB in 1998. In the first years of its operations, the Bank financed itself through private placements. FHB once again took a pioneering role in the market by launching the first public issue of CMBs in March, 2001. CMBs are mainly purchased by domestic institutional investors, though the involvement of foreign accounts is becoming increasingly important. Due to the rapid development and growth of mortgage lending, CMBs already represent the second largest segment of the fixed income market in Hungary.

For questions about

Call us anytime

Call us anytime

06 1 3344 344