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To: Hawkmoon who wrote (113248)7/23/2010 2:45:45 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 116555
 
In covered bonds you have an additional layer of equity if compared to the US MBS or ABS which enabled higher leverage for assuming same risk.

There is also another aspect of the bankruptcy laws which is much easier in the US than in the EU and the laws are not uniform across the board.

From what I heard (not know) to declare BK in the EU is much more difficult than in the US